NEW YORK (TheStreet) -- Shares of SouFun Holdings (SFUN) rose 7.99% to $8.92 in morning trading Thursday despite the Chinese real estate Internet portal's third-quarter earnings and full-year guidance that came in below analysts' expectations.
The company reported adjusted earnings of 14 cents a share for the quarter. Revenue rose 3% year-over-year to $190.5 million.
The consensus estimate had called for SouFun to report adjusted earnings of 18 cents a share on revenue of $202.2 million.
SouFun also reduced its full-year revenue guidance to a range of $675 million to $688 million from a range of $727 million to $739 million. The consensus estimate calls for full-year revenue of $725.66 million.
The company attributed the reduced guidance to "the slowdown in the real estate market in China, our reduction in fees we charge for listing services, and longer time for new businesses to contribute significantly to revenue growth," according to a statement.
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."