Qihoo 360 Technology Co. Ltd
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Qihoo 360 Technology Co. Ltd beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share didn't move.
Gross margins grew, operating margins shrank, net margins dropped.
Qihoo 360 Technology Co. Ltd reported revenue of $103.0 million. The nine analysts polled by S&P Capital IQ predicted revenue of $93.6 million on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $62.3 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 $0.22. The seven earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. Non-GAAP EPS of $0.22 for Q4 were 69% higher than the prior-year quarter's $0.13 per share. GAAP EPS of $0.11 were the same as 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 89.7%, 110 basis points better than the prior-year quarter. Operating margin was 10.7%, much worse than the prior-year quarter. Net margin was 12.4%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $92.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $495.6 million. The average EPS estimate is $1.06.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 95 members out of 238 rating the stock outperform, and 143 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Qihoo 360 Technology Co. Ltd a green thumbs-up, and 65 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Qihoo 360 Technology Co. Ltd is outperform, with an average price target of $32.91.
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