QIHOO 360 Technology Co. Ltd. Third Quarter Earnings Sneak Peek

QIHOO 360 Technology Co. Ltd. (NYSE:QIHU) will unveil its latest earnings on Monday, November 19, 2012.

QIHOO 360 Technology Co. Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 6 cents per share, a decline of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 10 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 6 cents during the last month. Analysts are projecting profit to rise by 114.3% versus last year to 30 cents.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of 6 cents per share versus a mean estimate of net income of 7 cents per share. In the first quarter, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $81.6 million in revenue this quarter, a rise of 71.8% from the year-ago quarter. Analysts are forecasting total revenue of $315.5 million for the year, a rise of 88% from last year’s revenue of $167.8 million.

A Look Back: In the second quarter, profit fell 37% to $7 million (6 cents a share) from $11.1 million (10 cents a share) the year earlier, missing analyst expectations. Revenue rose more than twofold to $72.8 million from $35.1 million.

Stock Price Performance: Between August 20, 2012 and November 13, 2012, the stock price rose $3.30 (16.3%), from $20.21 to $23.51. The stock price saw one of its best stretches over the last year between March 19, 2012 and March 26, 2012, when shares rose for six straight days, increasing 16.2% (+$3.62) over that span. It saw one of its worst periods between September 19, 2012 and September 27, 2012 when shares fell for seven straight days, dropping 12.6% (-$3.18) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose more than threefold in the first quarter before climbing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 7.33 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 7.92 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.8% to $54.9 million while assets rose 1.6% to $402.5 million.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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