Sohu Raises Guidance, Plans Debt Sale - TheStreet

Sohu Raises Guidance, Plans Debt Sale

The company's shares are stronger following the news.
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Chinese Internet portal

Sohu.com

(SOHU) - Get Report

said second-quarter results will be better than expected, as earnings and revenue came in stronger than the company previously anticipated.

The company said Tuesday it will earn $7.5 million, or 19 cents a share, in the quarter, reversing a loss of $870,000, or 2 cents a share, a year ago. Revenue totaled $19.3 million, up from $6.1 million last year. Advertising revenue reached $6.8 million, and nonadvertising revenue was $12.5 million.

Previously, Sohu estimated revenue of $14.6 million to $16 million, including advertising revenue of $4.6 million to $5.2 million. The company had projected second-quarter earnings of $4.6 million to $5 million, or 12 cents to 13 cents a share.

"Sohu is very proud to report these better-than-guided results in the second quarter," the company said in a press release. "All of our business lines grew at a rapid pace, underscoring how our diversified business model fared well even under unpredictable circumstances created by SARS."

The company will report its full second-quarter financial results on July 22.

Separately, Sohu said it plans to sell about $65 million of convertible senior notes due 2023 in a private offering. The overallotment option is $15 million of the notes. The proceeds will be used for general corporate purposes, including possible future acquisitions and investments.

Shares of Sohu were rising $2.81, or 8%, to $37.55 in Instinet trading before the opening bell.