Qihoo 360 Technology Co. Ltd. Crushes Wall Street Estimates; Shares Rise 5%

Source: Qihoo 360 Technology.

China-based network security expert Qihoo 360 Technology (NYSE: QIHU  ) just reported preliminary, unaudited results for the first quarter of fiscal year 2014. Following the report, Qihoo shares rose more than 5% in after-hours trading.

Analysts were looking for non-GAAP earnings of $0.34 per American depositary share on $228 million in sales. The company delivered $0.54 of earnings per ADS on $265 million in sales, leaving both analyst targets far behind. These results amount to a 141% year-over-year revenue increase, and year-ago earnings stopped at $0.14 per ADS.

The number of PC-based Qihoo users increased 5% year over year, while smartphone customers nearly doubled. Mobile users now account for the lion's share of Qihoo's total customer base. Daily clicks on 360.cn, Qihoo's Web-based security suite, increased by 58% overall.

"While we maintained our leadership position in key PC-related product categories, we continued to make significant progress in the ever more-important mobile Internet market," Qihoo CEO Hongyi Zhou said in a prepared statement. "We intend to continue to allocate significant resources to the fast-growing mobile Internet market for the foreseeable future."

"While search and mobile monetization are still in their early stages, they are ramping up faster than expected, and are poised to become key drivers of our future growth," added Qihoo president Xiangdong Qi.

For the second quarter, Qihoo expects sales to double year-over-year to at least $300 million. The Street view for this period sits at $270 million.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2973294, ~/Articles/ArticleHandler.aspx, 8/27/2014 9:31:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement