iQIYI Q2 Loss Widens on Tax Charge; Revenue Slips 5%
IQ sits 34% above its 52-week low of $0.95.
Summary
iQIYI reported Q2 revenue of RMB 6.29B, down 5% year-over-year, while net loss attributable to the company widened to RMB 287.5M from a year earlier, driven by a higher income tax expense related to adjustments at a Chinese mainland subsidiary. The company did not provide forward guidance. Content distribution revenue jumped 56% on higher cash transactions, and SG&A fell 22% on disciplined marketing spend. The company also repurchased 21.8M ADSs under its buyback program. This is the first earnings report since the new CFO appointment in July, and the widening loss despite cost cuts may pressure the stock, which trades at a steep valuation of 560x forward earnings.
At the time of this announcement, IQ was trading at $1.27 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $0.95 to $2.84. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.