The stock market is a volatile field. Recently, we have seen a fall in the values of large-cap, blue chip stocks in the market and this downtrend can be expected to continue for a certain period. Investor sentiment plays a major role in the movement of the price of a stock and changes with the occurrence of new geo-political events, for example, like those currently existing in the
iSoftStone Holdings Limited (NYSE/ISS) is a company in
that provides information
technology services to home clients as well as to those in the global arena. It boasts of a steady corporate
earnings growth owing to its even -balancing segments; i.e. its clients that
operate in the communications sphere, the financial services that it renders as
well as its sectors of energy, banking and transportation. China
For the quarter ended June 30, 2012, the net revenues of iSoftStone Holdings were $92.0 million. This when compared with the same quarter of last year, is an increase by 37.4%. The gross profit of the company in the same quarter this year was $30.2 million; an increase by 22.2% from last year’s same quarter. Expansion is continuous here with a quarter-to quarter (2011 to 2012) increase by 34.1% employees. Not stopping at that, the company is also appending matching facilities for growth- support. No wonder then that its corporate earnings have declined, but even so, the company is confident that this investment will pay off in the long run. After all, it believes that the latest technology and services that it provides will be in continuous demand by large firms with growing business strategies.
iSoftStone Holdings has had to see its stock suffer a declining price in the year 2012. In most likelihood, its downtrend has been broken and although it has posted growing revenues, its investors are feeling the heat and are apprehensive that it’s corporate earnings also likely to dip.
This is the scenario in most cases when there are Chinese stocks involved in the market. If any Chinese firm operates in the nation, investor sentiment is thick with fears about the economy getting hit badly and that the corporate earnings too will suffer greatly.
As for iSoftStone Holdings, the company has been expanding and so the dipping earnings could be overlooked for a few more quarters. The management is solid and has good future plans that have promise of delivering and giving returns to investors. A little breathing space and the company could well see its corporate earnings soar in the market. Putting money in this firm then can be considered as an attractive prospect.
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