Deer Consumer Products (DEER) +50% on Strong Results and Higher Forecast

Tomahawk, WI 3/29/2012 (StreetBeat) – Deer Consumer Products (Nasdaq:DEER ) forecast strong results for 2012, helped by sales of higher-margin products in China, sending its shares up more than 50 percent. As I write, share of DEER were up 45 percent at $4.61 per share on heavy volume of nearly 3 million shares compared to its average daily volume of 119,000 shares.

The company, which sells vacuum cleaners, water filters and air purifiers, expects 2012 earnings of $1.37 to $1.42 per share on revenue of $270 million to $290 million.

One analyst was expecting a profit of $1.30 per share on revenue of 250 million, according to Thomson Reuters I/B/E/S.

Deer Consumer, which has about 400 retail locations across China, said it expects gross margins to rise over time, as it looks to focus on Chinese cities with strong economic growth.

Deer also reported a net profit of $39.8 million, or $1.18 per share for 2011, compared with $30.3 million, or $0.90 per share, last year.

Revenue for the year rose nearly 29 percent to $226.7 million.

Deer Consumer is one of the many U.S.-listed Chinese companies accused of fraudulent activities by short sellers.

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