Shares of media company Phoenix New Media (NYSE:FENG) jumped as much as much as 27.9% on Tuesday following the company's third-quarter earnings release. The stock is up 17.3% at the time of this writing.
Positive sentiment from investors on Tuesday is likely due to the company significantly outperforming consensus analyst estimates for the quarter.
Phoenix posted revenue of 426.6 million Chinese renminbi (RMB), or about $64 million. This revenue was up 18.2% compared to the year-ago quarter. On average, analysts were expecting revenue of about $60.9 million.
Non-GAAP earnings per American depositary share (ADS) increased about 39% year over year to 0.48 RMB, or about $0.07. Analysts expected a non-GAAP loss per ADS of about $0.01.
Phoenix CEO Shuang Liu noted that the quarterly "not only delivered solid financial and operating performance, but also achieved several important milestones." Chief among these new milestones was when Yidian, a company Phoenix invested in and accounted for among its "available-for-sale investments," was issued a License for Internet News Information Service, which Liu said marked "the first license issued by the Cyberspace Administration of China that covers PC, mobile and we-media platforms since new regulations in China came into effect on June 1, 2017."
In addition, Phoenix also saw growth in its weekly active users on its iFeng News App that surpassed all of its peers, according to an iResearch report cited by Phoenix.
Phoenix believes the company is well positioned to sustain its recent momentum.
Looking ahead, we will remain focused on market share expansion. By leveraging our professional journalism, cutting-edge technology, extensive partnership resources as well as our branding power, we believe we can maintain our leading position in the highly competitive market.