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Last Update: 29-Apr-13 07:39 ET
Sohu shares little changed following beat on GAAP earnings
Sohu.com (SOHU $50.77 +0.00) reported first quarter GAAP earnings of $0.60 per share, $0.15 better than the Capital IQ Consensus Estimate of $0.45, while revenues rose 35.9% year/year to $308 million versus the $296.86 million consensus. Gross Margin Both GAAP and non-GAAP gross margin was 66% for the first quarter of 2013, compared with 69% in the fourth quarter of 2012 and 65% in the first quarter of 2012. Business Outlook For the second quarter of 2013, Sohu estimates: Brand advertising revenues to be between $98 million and $100 million; this implies a sequential increase of 22% to 25% and an annual increase of 41% to 44%. Sogou revenues to be between $48 million and $50 million; this implies a sequential increase of 22% to 27% and an annual growth of 58% to 65%. Online game revenues to be between $165 million and $170 million. Before deducting the share of non-GAAP net income pertaining to the Non-Controlling interest, non-GAAP net income to be between $53-56 mln. Non-GAAP net income attributable to Sohu.com to be between $19-$21 mln , and non-GAAP fully diluted earnings per share to be between $0.50-0.55 vs $0.71 CIQ est. Assuming no new grants of share-based awards, we estimate that compensation expenses relating to share-based awards to be around US$2 million to US$3 million. The estimated impact of this expense is expected to reduce Sohu's fully diluted earnings per share for the second quarter of 2013 under US GAAP by $0.05-0.07.
