Internet search and gaming group Sohu.com issued mixed earnings and guidance before the bell Monday, sending shares tumbling. The Beijing-based company reported third-quarter earnings of 51 cents a share on revenue of $368 million, up 29% from the year-ago period.
For the fourth quarter, Sohu anticipates revenue of between $378 million and $390 million, higher than expectations of $369.9 million according to analysts surveyed by Yahoo! Finance. Earnings are anticipated between 30 cents to 35 cents, lower than the consensus estimate of 48 cents.
By close, shares had dropped 16.4% to $68.11, and 6.8 million shares had changed hands compared to its three-month average daily trading volume of 1.9 million.
TheStreet Ratings team rates Sohu.com Inc as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate Sohu.com Inc (SOHU) a BUY. This is driven by several positive factors, 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, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: SOHU Ratings Report