NEW YORK (TheStreet) -- Shares of SouFun Holdings (SFUN) fell more than 8% to a 52-week low of $8.36 ahead of the company's scheduled third-quarter earnings release on Thursday before the market open. Here's what analysts are expecting from the Chinese real estate Internet portal.
The consensus estimate calls for SouFun to report earnings of 18 cents a share on revenue of $202.2 million. In the third quarter last year, the company posted earnings of 23 cents a share, which beat analysts' expectations of 17 cents a share. Revenue totaled $185.05 million, which surpassed the consensus estimate of $173.71 million.
In the second quarter 2014, SouFun posted earnings of 16 cents a share, which edged analysts' estimate of 14 cents a share. Revenue totaled $168.15 million, which came up short of the consensus estimate of $173.52 million.
Separately, TheStreet Ratings team rates SOUFUN HLDGS LTD as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUFUN HLDGS LTD (SFUN) 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 compelling growth in net income, robust revenue growth, reasonable valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 23.2% when compared to the same quarter one year prior, going from $55.37 million to $68.20 million.
- SFUN's revenue growth trails the industry average of 29.4%. Since the same quarter one year prior, revenues rose by 16.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for SOUFUN HLDGS LTD is currently very high, coming in at 84.28%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 40.55% significantly outperformed against the industry average.
- SOUFUN HLDGS LTD has improved earnings per share by 11.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SOUFUN HLDGS LTD increased its bottom line by earning $0.71 versus $0.37 in the prior year. For the next year, the market is expecting a contraction of 8.2% in earnings ($0.65 versus $0.71).
- You can view the full analysis from the report here: SFUN Ratings Report