The 10-second takeaway
For the quarter ended Sep. 30 (Q3), SINA beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Gross margins shrank, operating margins contracted, net margins expanded.
SINA notched revenue of $152.4 million. The 17 analysts polled by S&P Capital IQ predicted net sales of $149.1 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $130.3 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 $0.17. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS were $0.14 for Q3 against -$5.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.4%, 170 basis points worse than the prior-year quarter. Operating margin was 2.5%, 450 basis points worse than the prior-year quarter. Net margin was 6.5%, 26,470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $134.2 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $524.6 million. The average EPS estimate is $0.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,123 members out of 1,232 rating the stock outperform, and 109 members rating it underperform. Among 281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give SINA a green thumbs-up, and 35 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SINA is outperform, with an average price target of $76.88.
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