- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
In spite of rising revenues, Sohu.com Inc.’s (NASDAQ:SOHU) profit declined in the second quarter. Sohu.com is an Internet company that, through its subsidiaries, provides online products and services with news, information, entertainment and communication in China.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Sohu.com Inc. Earnings Cheat Sheet
Results: Net income for Sohu.com Inc. fell to $12.8 million (28 cents per share) vs. $44.3 million ($1.10 per share) a year earlier. This is a decline of 71.1% from the year-earlier quarter.
Revenue: Rose 28.7% to $255.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sohu.com Inc. fell short of the mean analyst estimate of 38 cents per share. It beat the average revenue estimate of $248.3 million.
Quoting Management: Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc. commented, “We had a solid second quarter with total revenues rising nearly 30% from last year, despite challenges faced in our brand advertising business. As China’s economic growth continued to decelerate and we initiated some operational transitions in our online video business, revenues from brand advertising recorded only a low single-digit year-on-year increase.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 35.7%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 42.2% from the year earlier quarter.
For three quarters in a row, the company’s net income has fallen. In the first quarter, net income fell 48.4% from the year earlier, while the figure fell 38.9% in the fourth quarter of the last fiscal year.
The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 8 cents, and in the fourth quarter of the last fiscal year, it was ahead by 5 cents.
Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from $1.01 per share to 59 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $3.39 a share to $2.27 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories:
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.