SouFun (SFUN) Stock Falls on Earnings Miss

NEW YORK (TheStreet) -- Shares of SouFun Holdings (SFUN) were falling 5.1% to $7.07 Wednesday after the Chinese online real estate listing company missed analysts' estimates for earnings in the first quarter.

SouFun reported earnings of 2 cents a share for the first quarter, below analysts' estimates of 4 cents a share. Revenue grew 1.8% year over year to $123.45 million for the quarter, above analysts' estimates of $117.71 million for the quarter.

Revenue from marketing services fell 13.5% year over year to $40.6 million for the first quarter, and listing services revenue fell 43.95 to $23.6 million. E-commerce services revenue grew 75.2% year over year to $51.5 million for the first quarter.

"SouFun is aggressively penetrating into new home, resale and rental, and home furnishing transactions across China's major cities." Chairman and CEO Vincent Mo said. "We added more than 11,000 employees with attractive incentives this year to support our ecommerce expansions and we will continue to expand our ecommerce staffs to keep the current momentum, even if this in the short term will lead to rapid increases in our expenses and sharp decreases in our net income."

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 a few notable 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 revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

You can view the full analysis from the report here: SFUN Ratings Report

SFUN ChartSFUN data by YCharts

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