Skip to main content

NEW YORK (TheStreet) -- Shares of Youku Tudou (YOKU) were soaring, sharply up 17.29% to $27 on heavy volume in afternoon trading Thursday, following the release of the Chinese online television company's first quarter financial results.

The company posted a net loss of about $83.5 million, worse compared to a loss of $28.4 million in the same quarter of last year.

On a per American depositary share basis, the company posted an adjusted loss of 40 cents per share.

Revenue for the quarter came in at $170.4 million for the period.

Analysts polled by Thomson Reuters estimated a loss of 2.25 Chinese yuan renminbis per share on revenue of 1.03 billion yuan for the quarter.

In U.S. dollars, that comes out to a consensus estimate of a loss of 36 cents per share on revenue of $170 million for the second quarter.

For the second quarter, the company expects adjusted revenues of 1.47 billion to 1.52 billion yuan.

It expects advertising revenue of between 1.25 billion to 1.3 billion yuan.

This morning, Brean Capital analysts raised their price target to $26 from $20 on shares, while maintaining their "buy" rating.

The firm said the company guided to a 53% to 59% net revenue growth for the second quarter, higher than the consensus forecast.

"We expect YOKU to further improve its brand ad monetization under its multi-screen entertainment and media strategy with increasing mobile contribution in 2015," said Brean analysts.

Youku Tudou chairman and CEO Victor Koo said strategy will improve business economics.

The first quarter was "marked by solid progress in the three key growth pillars that drive our business development for this year: accelerated topline growth, revenue diversification, and significant ramp up of web-native content," said Koo.

About 7.73 million shares have exchanged hands as of 2:07 p.m. ET today, compared to its average trading volume of about 3.99 million shares a day.

Beijing-based Youku Tudou is an Internet television company that enable users to search, view and share video content across multiple devices.

It has monthly visitors from home and office personal computers of about 245 million for the Youku platform and about 174 million for the Tudou platform.

Through its Youku and Tudou platforms, the company built an online video content library that contains more than 5,900 movie titles, 2,200 television serial drama titles and over 800 variety shows. 

Separately, TheStreet Ratings team rates YOUKU TUDOU INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate YOUKU TUDOU INC (YOKU) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and poor profit margins."

You can view the full analysis from the report here: YOKU Ratings Report

YOKU data by YCharts

Image placeholder title