The 10-second takeaway
For the quarter ended March 31 (Q1), Sohu.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.
Gross margins grew, operating margins grew, net margins shrank.
Sohu.com logged revenue of $307.6 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $296.9 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $226.6 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 $0.62. The nine earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. Non-GAAP EPS of $0.62 for Q1 were 17% higher than the prior-year quarter's $0.53 per share. GAAP EPS of $0.60 for Q1 were 13% higher than the prior-year quarter's $0.53 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 66.3%, 140 basis points better than the prior-year quarter. Operating margin was 23.1%, 10 basis points better than the prior-year quarter. Net margin was 7.9%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $318.2 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $2.86.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,137 members out of 1,206 rating the stock outperform, and 69 members rating it underperform. Among 270 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 247 give Sohu.com a green thumbs-up, and 23 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 $49.62.
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