Things are going so well in China that even a once-moribund media company like Sohu.com
Wall Street was looking for a profit of just $0.21 a share with $46.5 million on the top line. Brand advertising and online games posted healthy year-over-year gains, more than offsetting weakness in wireless and sponsored search.
The uptick in online games is noteworthy. That segment soared 473% higher to $12.7 million. That is still a small slice of the revenue mix pie at Sohu. This isn't the second coming of stronger online gaming players like NetEase.com
It was just a few years ago when Sohu, SINA
There are still players like Tom Online and KongZhong
The strong quarter isn't a blip at Sohu. The party will continue, going by the company's refreshing guidance. Sohu is looking to earn between $0.33 a share and $0.35 a share on $53.5 million to $55.5 million in revenue next quarter.
Too slow, Wall Street. The market was only expecting the company to earn $0.24 a share on $49.1 million in revenue during the quarter. Look higher, analysts. A lot higher.
Well done, Sohu. Now just make sure you don't get tripped by the pros down below.
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Longtime Fool contributor Rick Munarriz has been a fan of China's high-margin online stocks for a long time. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.