Chinese smart home stock Viomi Technology (VIOT) spiked on Monday after posting better-than-expected sales and earnings for the fourth quarter. Viomi stock jumped over its buy zone from a recent breakout.
Guangzhou, China-based Viomi makes internet-connected home appliances. It is backed by Chinese consumer electronics maker Xiaomi. Viomi’s products include smart refrigerators, ovens, dishwashers, robot vacuum cleaners, speakers and home security devices.
Needham analyst Laura Martin reiterated her buy rating on Viomi stock and raised her price target to 12.50 from 10.
Viomi Sales Jump 143% Year Over Year
Viomi’s sales rose 143% year over year to $139 million in the December quarter. Its adjusted earnings rose 37% in local currency to the equivalent of $9.5 million.
The company also announced a special cash dividend of 10 cents per American depositary share, payable on or about April 5.
“In the quarter, we continued to experience robust market demand across our product portfolio, successfully strengthened our channel presence both online and offline and further expanded our household user base,” Viomi Chief Executive Xiaoping Chen said in a news release.
New Products Include Instant-Heating Water Heaters
Viomi has recently launched a 5G-enabled smart refrigerator, a premium range hood and a series of instant-heating water heaters.
The company expects sales to increase about 105% year over year in the first quarter.
As of the end of 2018, Viomi had at least one appliance in 1.7 million unique households, Martin said. That’s up from 1.4 million at the end of September and 900,000 at the end of 2017, she said.
And 14.3% of its customer homes had at least two Viomi connected products in the fourth quarter, suggesting more bundled sales, Martin said.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on personal technology and semiconductor companies.
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