Shares of Sohu.com
Revenue growth accelerated during the period, soaring 28% to $173.2 million. Sohu's brand advertising, online gaming, and search businesses all posted year-over-year gains of 30% or better. Sohu's wireless revenue was the lone laggard, off by 8%, but we've known that its mobile value-added services model has been dying for awhile now. Several years ago, wireless was Sohu's bread and butter, but now it accounts for a mere 8% slice of the revenue mix pie.
The news gets even sweeter on the way down to the bottom line, where earnings shot up 41% to $1.07 a share. Analysts were banking on a profit of $0.99 a share on $167.6 million in revenue.
Hopefully investors in Shanda Games
Likely taking a jab at the ridiculous valuation of recent IPO Youku.com
The Chinese new-media darling's guidance is also encouraging. It's true that targeting revenue between $164.5 million to $169.5 million for the current quarter represents a small sequential dip. Margins look strong, though, with Sohu's bottom-line outlook of $1.03 a share to $1.08 a share hinting at a healthier performance on the bottom line. Either way, the pros were already braced for a seasonal dip. They figured that Sohu would only earn $0.95 a share on $161.6 million in revenue for the current quarter.
Wrong again, Wall Street. After a rare miss during the previous year's fourth quarter Sohu has rattled off four consecutive market-thumping results.
Looking good, Sohu.
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Longtime Fool contributor Rick Munarriz has been a fan of China’s high-margin online stocks for a long time. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.