SINA Beats on Both Top and Bottom Lines

SINA (Nasdaq: SINA  ) reported earnings on Nov. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), SINA beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.

Gross margins shrank, operating margins contracted, net margins expanded.

Revenue details
SINA notched revenue of $152.4 million. The 17 analysts polled by S&P Capital IQ predicted net sales of $149.1 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $130.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.17. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS were $0.14 for Q3 against -$5.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.4%, 170 basis points worse than the prior-year quarter. Operating margin was 2.5%, 450 basis points worse than the prior-year quarter. Net margin was 6.5%, 26,470 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $134.2 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $524.6 million. The average EPS estimate is $0.08.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,123 members out of 1,232 rating the stock outperform, and 109 members rating it underperform. Among 281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give SINA a green thumbs-up, and 35 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SINA is outperform, with an average price target of $76.88.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend SINA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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