The 10-second takeaway
For the quarter ended March 31 (Q1), Sohu.com met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Sohu.com logged revenue of $226.6 million. The 11 analysts polled by S&P Capital IQ looked for sales of $225.4 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $174.4 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 $0.53. The seven earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. GAAP EPS of $0.53 for Q1 were 48% lower than the prior-year quarter's $1.01 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 64.9%, 880 basis points worse than the prior-year quarter. Operating margin was 23.0%, 1,330 basis points worse than the prior-year quarter. Net margin was 10.2%, 1,550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $251.1 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,167 members out of 1,239 rating the stock outperform, and 72 members rating it underperform. Among 308 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 285 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 outperform, with an average price target of $67.14.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Sohu.com. 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.