China’s third largest search engine, Sohu.com Inc. (NASDAQ:SOHU) declared fourth quarter results that were down, sharply, to 39 percent from last year and which substantially missed analysts’ estimates.

Net income was reported at $25 million (65 cents a share) compared to $41.5 million ($1.07 a share) a year ago. The average expectation of seven analysts was $48.7 million. Revenues, however, rose 42 percent to $246 million from $173.2 million. The higher revenues, represented chiefly by games sales and advertising, were offset by a $27.5 million impairment charge on acquisitions.

Forecasts for the current quarter also failed to match up to analysts’ expectations – according to the company, revenues could be between $219 million to $225 million against analysts’ estimates of $240 million.

Current market shares of the Chinese search engine market stand with Baidu (NASDAQ:BIDU) at the top with 78.3 percent, Google (NASDAQ:GOOG) 16.7 percent, and Sohu at 2.7 percent.

Here’s how these stocks are reacting to the news:

Sohu.com Inc. (NASDAQ:SOHU): SOHU shares recently traded at $54.37, down $8.68, or 13.77%. They have traded in a 52-week range of $46.35 to $109.37. Volume today was 4,816,928 shares versus a 3-month average volume of 1,245,680 shares. The company’s trailing P/E is 12.41, while trailing earnings are $4.35 per share.

Baidu, Inc. (NASDAQ:BIDU): BIDU shares recently traded at $131.82, down $2.71, or 2.01%. They have traded in a 52-week range of $100.95 to $165.96. Volume today was 3,369,173 shares versus a 3-month average volume of 5,528,090 shares. The company’s trailing P/E is 50.58, while trailing earnings are $2.61 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $605.80, up $9.47, or 1.59%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 1,848,931 shares versus a 3-month average volume of 3,048,040 shares. The company’s trailing P/E is 20.38, while trailing earnings are $29.76 per share.

To contact the reporter on this story: Jonathan Morris at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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