2 Hot Chinese Internet Stocks in Demand Before Earnings

Changyou.com Limited (NASDAQ:CYOU) will unveil its latest earnings on Monday, October 31, 2011. The average estimate of analysts is for net income of 98 cents per share, a rise of 15.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 99 cents. Between one and three months ago, the average estimate moved up. It has dropped from $1 during the last month. For the year, analysts are projecting profit of $4.11 per share, a rise of 24.9% from last year.

The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 10 cents, reporting net income of $1.02 per share against a mean estimate of profit of 92 cents per share. On average, analysts predict $117.5 million in revenue this quarter, a rise of 37.2% from the year ago quarter. Analysts are forecasting total revenue of $440 million for the year, a rise of 34.5% from last year’s revenue of $327.1 million.

Competitors to Watch: The9 Limited (NASDAQ:NCTY), Shanda Games Limited (NASDAQ:GAME), Giant Interactive Group Inc (NYSE:GA), Perfect World Co., Ltd. (NASDAQ:PWRD), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), NetEase.com, Inc. (NASDAQ:NTES), Gravity Co., LTD. (NASDAQ:GRVY), and Sohu.com Inc. (NASDAQ:SOHU).

Sohu.com, Inc. (NASDAQ:SOHU) will unveil its latest earnings on Monday, October 31, 2011. The average estimate of analysts is for net income of $1.18 per share, a rise of 10.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.19. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 28.5% versus last year to $4.65.

Last quarter, the company beat estimates by 4 cents, coming in at profit of $1.10 a share versus the estimate of net income of $1.06 a share. It marked the fourth straight quarter of beating estimates.  On average, analysts predict $228.1 million in revenue this quarter, a rise of 39% from the year ago quarter. Analysts are forecasting total revenue of $834.3 million for the year, a rise of 36.1% from last year’s revenue of $612.8 million.

Competitors to Watch: Baidu.com, Inc. (NASDAQ:BIDU), SINA Corporation (NASDAQ:SINA), Google Inc. (NASDAQ:GOOG), NetEase.com, Inc. (NASDAQ:NTES), Yahoo! Inc. (NASDAQ:YHOO), Ku6 Media Co., Ltd. (NASDAQ:KUTV), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), Youku.com Inc (NYSE:YOKU), and Rediff.com India Ltd. (NASDAQ:REDF).