NEW YORK (TheStreet) --Qihoo 360 (QIHU - Get Report) was falling -7.1% to $94.50 Monday after reporting lower margins for the second quarter and despite beating analysts' estimates for earnings and revenue.
For the second quarter Qihoo 360 reported earnings of 50 cents a share, beating the Capital IQ Consensus Estimate of 48 cents a share by 2 cents. Revenue grew 109.6% from the year-ago quarter, to $317.9 million, above analysts' expectations of $310.5 million.
Despite the positive results for earnings and revenue, the company reported margins of 22% for the quarter, down from 34% in the year-ago quarter.
TheStreet Ratings team rates QIHOO 360 TECHNOLGY CO -ADR as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate QIHOO 360 TECHNOLGY CO -ADR (QIHU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."You can view the full analysis from the report here: QIHU Ratings Report
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