Xinyuan Real Estate: A Strong Quarter, And Another One Is Coming Soon

Summary:

- Xinyuan reported strong Q3 2018 results with both revenue and adjusted net earnings per ADS up double digits when compared to Q3 2017.

- Xinyuan continues to be a shareholder-friendly company (management bought back shares and announced another $0.10 quarterly dividend).

- I'm long Xinyuan and I may get longer in the months ahead.

Xinyuan Real Estate ($XIN) has been a disappointing position in the R.I.P. Portfolio as the stock has significantly underperformed the broader market over the last 11-plus months.

There are several reasons why XIN shares are down more than 30% on a year-to-date basis, but the impact (and uncertainty) related to the adoption of the recent accounting change, ASC 606, is on the top of the list (read more about this topic here). I, however, believe that XIN shares may be worthy of investment dollars because the company's most recent operating results tell a good story.