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.
Updates
· SEC 6-K — Q2 total revenues were $136 million, with marketing services $15 million and online games $116 million. Q3 guidance: marketing services $14M-$15M, online games $105M-$115M, net loss $13M-$23M.
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.