The 10-second takeaway
For the quarter ended June 30 (Q2), Sohu.com beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Sohu.com notched revenue of $255.7 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $247.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $198.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The nine earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.28 for Q2 were 75% lower than the prior-year quarter's $1.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.0%, 1,220 basis points worse than the prior-year quarter. Operating margin was 18.0%, 1,660 basis points worse than the prior-year quarter. Net margin was 5.0%, 1,730 basis points worse than the prior-year quarter.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,162 members out of 1,246 rating the stock outperform, and 84 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 238 give Sohu.com a green thumbs-up, and 30 give it a red thumbs-down.
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