The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sohu.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted.
Margins dropped across the board.
Sohu.com chalked up revenue of $299.5 million. The 11 analysts polled by S&P Capital IQ expected revenue of $292.2 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $246.2 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 $0.73. The nine earnings estimates compiled by S&P Capital IQ predicted $0.69 per share. GAAP EPS of $0.60 for Q4 were 7.7% lower than the prior-year quarter's $0.65 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 68.8%, 250 basis points worse than the prior-year quarter. Operating margin was 21.5%, 980 basis points worse than the prior-year quarter. Net margin was 8.5%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $279.6 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $1.25 billion. The average EPS estimate is $3.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,144 members out of 1,211 rating the stock outperform, and 67 members rating it underperform. Among 293 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 273 give Sohu.com a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sohu.com is hold, with an average price target of $48.96.
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