The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Sohu.com beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Sohu.com booked revenue of $285.4 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $275.6 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $232.9 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 $0.77. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. GAAP EPS of $0.63 for Q3 were 46% lower than the prior-year quarter's $1.17 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 66.1%, 520 basis points worse than the prior-year quarter. Operating margin was 22.3%, 930 basis points worse than the prior-year quarter. Net margin was 9.1%, 1,100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $292.3 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $2.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,166 members out of 1,234 rating the stock outperform, and 68 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 261 give Sohu.com 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 Sohu.com is outperform, with an average price target of $54.44.
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