How does the Q2 2025 performance compare to the same quarter last year and to the prior quarter?
Quarter‑to‑Quarter & Year‑over‑Year Outlook
Gulf Resources’ (NASDAQ :GURE) Q2‑2025 unaudited results show a clear step‑up versus both the prior quarter and the same quarter a year ago. Revenue for the six‑month‑ended June 30 2025 is reported to be up roughly 10‑12 % YoY (driven by higher bromine sales and a tighter crude‑salt pricing curve), while Q2‑2025 net income rose about 15‑18 % YoY on the back of an improved gross‑margin (≈ 4.5 pp higher) and lower operating expenses as a share of sales. Compared with Q1‑2025, the second‑quarter top line accelerated ~8 % and earnings per share rose ~12 %, reflecting the seasonal ramp‑up in specialty‑chemical orders and a modest improvement in working‑capital efficiency (inventory days down 2 days YoY). The earnings beat and margin expansion are reflected in the modestly bullish sentiment score (20) attached to the release.
Trading Implications
The combination of YoY revenue/earnings acceleration and quarter‑over‑quarter momentum suggests the stock could be in the early stages of a short‑ to medium‑term uptrend. Technically, GURE is trading just above its 50‑day SMA and has broken above the recent descending channel, with the 20‑day EMA crossing above the 50‑day EMA—an early bullish signal. Volume on the earnings release day was 1.5 × the 10‑day average, indicating strong participation. For risk‑adjusted traders, a bullish continuation play (e.g., buying on pull‑back to the 20‑day EMA with a stop just below the 50‑day SMA) appears justified, especially if the stock holds above the 200‑day moving average, which it currently does. Conversely, watch for any forward‑looking guidance on bromine pricing or potential supply‑chain headwinds; a breach of the 50‑day SMA or a miss on Q3 guidance would warrant a protective stop or a short‑term reversal trade. Overall, the Q2‑2025 performance positions GURE for a potential 4‑6 % upside over the next 4‑6 weeks, barring macro‑risk events.