NEW YORK (TheStreet) -- Youku Tudou (YOKU) was rising 12.77% to $34.80 at 11:13 a.m. EST on Friday after China's largest video Web site reported fourth-quarter earnings that surpassed analysts' expectations.
Revenue increased 42% year over year to $148.9 million, which beat the consensus estimate by 2%. GAAP earnings per share amounted to a loss of 2 cents a share, which was narrower than the consensus estimate of a 5 cents a share loss. Non-GAAP EPS was 4 cents a share and turned positive for the first time in the company's history.
Youku issued first-quarter revenue guidance of $112 million to $119 million, which is 5% below analysts' estimates. This marks a 36% year-over-year increase but a 22% quarterly decline, the largest sequential decline in the company's reporting history.
TheStreet Ratings team rates YOUKU TUDOU INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YOUKU TUDOU INC (YOKU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."