The 10-second takeaway
For the quarter ended June 30 (Q2), Sohu.com met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins shrank, net margins expanded.
Sohu.com booked revenue of $338.9 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $339.7 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $255.7 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 $0.58. The seven earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. Non-GAAP EPS of $0.58 for Q2 were 38% higher than the prior-year quarter's $0.42 per share. GAAP EPS of $0.56 for Q2 were 100% higher than the prior-year quarter's $0.28 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 66.5%, 40 basis points worse than the prior-year quarter. Operating margin was 19.0%, 500 basis points worse than the prior-year quarter. Net margin was 6.4%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $360.6 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $2.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,118 members out of 1,186 rating the stock outperform, and 68 members rating it underperform. Among 253 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 234 give Sohu.com a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sohu.com is hold, with an average price target of $55.55.
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