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Can Meet These Numbers?

By Seth Jayson – Updated Apr 7, 2017 at 12:16PM

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Checking expectations (Nasdaq: SOHU) is expected to report Q3 earnings around Oct. 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict's revenues will grow 18.3% and EPS will wither -55.6%.

The average estimate for revenue is $275.6 million. On the bottom line, the average EPS estimate is $0.56.

Revenue details
Last quarter, recorded revenue of $255.7 million. GAAP reported sales were 29% higher than the prior-year quarter's $198.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.42. GAAP EPS of $0.28 for Q2 were 75% lower than the prior-year quarter's $1.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 66.9%, 570 basis points worse than the prior-year quarter. Operating margin was 24.0%, 1,060 basis points worse than the prior-year quarter. Net margin was 5.0%, 1,730 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.05.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,164 members out of 1,233 rating the stock outperform, and 69 members rating it underperform. Among 281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 260 give a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on is outperform, with an average price target of $60.98.

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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.

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