Sohu.com Q2 Revenue Beats Loss Guidance, Swings to Profit on Tax Benefit
SOHU sits 18% above its 52-week low of $11.61.
Summary
Sohu.com reported Q2 revenue of $135.54M, up 7% YoY, and net income of $235K, reversing from a prior guidance of a $15M-$25M loss. The profit was aided by a $13M tax expense reversal. The company also extended its share buyback program, having repurchased $124M in ADSs to date. For Q3, Sohu guided for a net loss of $13M-$23M, with online game revenue expected between $105M and $115M. This follows a Q1 net loss of $4M and a Q2 loss forecast issued in May. The Q2 beat and buyback extension are positive signals, but the Q3 loss guidance tempers the outlook.
At the time of this announcement, SOHU was trading at $13.71 on NASDAQ in the Technology sector, with a market capitalization of approximately $357.4M. The 52-week trading range was $11.61 to $17.30. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.