What: Shares of SINA Corp. (NASDAQ:SINA) were up 13.4% as of 2:45 p.m. EDT Tuesday after the Chinese internet company announced stronger-than-expected second-quarter 2016 results.
So what: Adjusted quarterly revenue grew 14% year over year, to $241.4 million, and translated to adjusted net income attributable to SINA of $19.9 million, or $0.27 per diluted share. For perspective -- and though we don't pay much attention to Wall Street's quarterly demands -- analysts' consensus estimates predicted SINA would achieve adjusted earnings of just $0.15 per share on revenue of $228.9 million.
Looking closer at SINA's top line, online advertising revenue jumped 16% year over year, to $205 million, as a $38.4 million increase in Weibo advertising and marketing revenue was only partially offset by a $9.7 million decline in portal ad revenue. Adjusted non-advertising revenue also climbed 4.6% year over year, to $38.9 million.
Nonetheless, SINA chairman and CEO, Charles Chao lauded the company's execution of its mobile strategy on the portal side, saying the company saw sustainable growth in mobile traffic and significant year-over-year increases in daily active users of SINA News. All told, 48% of total portal advertising revenue came from mobile devices during the quarter, up sequentially from 44% in Q1.
Meanwhile, Weibo saw monthly active users jump 33% year over year, to 282 million, of which 89% were mobile users. Daily active users on Weibo also increased 36% year over year, to 126 million.
Now what: SINA now expects adjusted revenue for the full-year 2016 to be between $950 million and $1 billion, up from its previous guidance range of $850 million to $950 million. Analysts, on average, were looking for annual revenue near the low end of SINA's new range, with consensus estimates calling for $953.6 million.
In the end, this was a solid quarter from SINA that handily beat expectations and painted a brighter picture of its future looking forward. It's no surprise to see shares up big today.
Steve Symington has no position in any stocks mentioned. The Motley Fool recommends 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.