Duoyuan Global Water (DGW) could use some  good news.  The stock was hammered in September on accounting concerns and has had trouble recovering.  This morning there is a bright spot as the company reported earnings that were ahead of analyst estimates both on the EPS and revenue side.  The company reported an EPS of .55/share vs the analyst estimate for .48 on revenues of $51.5 million vs the analyst estimate for $49 million.  Those numbers are good for a quarter over quarter increase of 10% and 38% respectively, so a nice quarter out of DGW.  However, until the accounting concerns are officially laid to rest, it will be difficult for this stock to have any kind of sustained move up. 

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CFO Stephen Park commented on the future: “As we move forward through 2010, our competitive position remains strong and we are poised for future growth supported by our trusted brand name and extensive distribution network.  With this in mind, we expect to generate revenue of approximately RMB210 million in the fourth quarter of 2010 or over RMB1.0 billion for the full year of 2010.  This implies a year-over-year growth rate of approximately 29% for the full year of 2010.”

It should be noted that there was no mention of the accounting concerns in the press release.  If Seeking Alpha posts the full transcript of the call, I’ll take a look and report back if there is any discussion of this.