Qihoo 360 Technology
The 10-second takeaway
For the quarter ended March 31 (Q1), Qihoo 360 Technology 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 contracted significantly. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Qihoo 360 Technology tallied revenue of $109.9 million. The nine analysts polled by S&P Capital IQ expected revenue of $105.9 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $69.3 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 $0.14. The eight earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.14 for Q1 were 33% lower than the prior-year quarter's $0.21 per share. GAAP EPS of $0.05 for Q1 were 58% lower than the prior-year quarter's $0.12 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 87.3%, 170 basis points worse than the prior-year quarter. Operating margin was 6.2%, much worse than the prior-year quarter. Net margin was 5.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $142.3 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $587.0 million. The average EPS estimate is $1.00.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 103 members out of 246 rating the stock outperform, and 143 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Qihoo 360 Technology a green thumbs-up, and 62 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Qihoo 360 Technology is outperform, with an average price target of $38.84.
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