Qihoo reported earnings of 57 cents a share for the first quarter, beating analysts' estimates of 49 cents a share for the quarter. Revenue grew 45% year over year to $384.4 million for the quarter, above analysts' estimates of $378.12 million.
Looking to the second quarter, Qihoo expects revenue of $435 million to $445 million, representing a 37% to 40% increase from the year-ago quarter. Analysts expect the company to report revenue of $437.2 million for the second quarter.
"While we maintained our leadership position in key PC-related product categories, we continued to make progress in mobile Internet," Chairman and CEO Hongyi Zhou said in a statement. "The number of Chinese smartphone users of our key mobile security product, 360 Mobile Safe, reached 778 million in the first quarter, making Qihoo 360 the indisputable leader in mobile Internet security in China."
TheStreet Ratings team rates QIHOO 360 TECHNOLGY CO -ADR as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate QIHOO 360 TECHNOLGY CO -ADR (QIHU) a BUY. This is driven by a number of 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 robust revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."