Here’s How Sohu’s Earnings Miss is Affecting Chinese Internet Shares

Chinese online gaming and search firm Sohu.com Inc. (NASDAQ:SOHU) posted revenues of $233 million, up 41.9% Y-o-Y and beating estimates by $5 million. Earnings per share for the quarter came in at $1.26, which disappointed by $0.01.

For Q4 SOHU estimates revenues of $241 – $246 million and EPS of $1.30-$1.35. This healthy guidance compares favorably with analysts’ consensus of $235.8 million and $1.25.

Investors, however, appear to be miffed with the fact that SOHU missed analysts’ EPS expectation for the first time after beating estimates all through Sep 10 to Jun 11.

Here’s how Chinese Internet stocks are reacting to the news:

  • Sohu.com Inc. (NASDAQ:SOHU): The shares recently traded at $61.77, down $7.23, or 10.48%. Its market capitalization is $2.37 billion. They have traded in a 52-week range of $46.35 to $109.37. Volume today was 2,341,985 shares versus a 3-month average volume of 1,965,290 shares. The company’s trailing P/E is 14.73, while trailing earnings are $4.19 per share. About the company: Sohu.com Inc. operates an Internet portal in China. The Company’s Web site consists of Chinese language Web navigational and search capabilities, Web-based communications services, and a platform for e-commerce services.
  • Sina Corp. (NASDAQ:SINA): The shares recently traded at $82.55, down $5.85, or 6.62%. Its market capitalization is $5.42 billion. They have traded in a 52-week range of $54.12 to $147.12. Volume today was 2,337,299 shares versus a 3-month average volume of 6,632,040 shares. The company’s trailing earnings are $-0.70 per share. About the company: SINA Corporation is a global Internet media company operating Chinese-language destination sites. The Company offers a network of branded content and services targeting people of Chinese descent worldwide. SINA.com offers online news, entertainment, community, and commerce through web sites that are produced and updated by local teams in China, Hong Kong, Taiwan, and North America.
  • Baidu, Inc. (NASDAQ:BIDU): The shares recently traded at $141.77, down $2.85, or 1.97%. Its market capitalization is $49.47 billion. They have traded in a 52-week range of $94.33 to $165.96. Volume today was 3,403,686 shares versus a 3-month average volume of 10,268,500 shares. The company’s trailing P/E is 64.15, while trailing earnings are $2.21 per share. About the company: Baidu, Inc. operates an Internet search engine. The Company offers algorithmic search, enterprise search, pay for performance and news, MP3, and image searches.
  • Shanda Interactive Entertainment Ltd. (NASDAQ:SNDA): The shares recently traded at $40.03, down $0.08, or 0.2%. Its market capitalization is $2.26 billion. They have traded in a 52-week range of $28.44 to $54.20. Volume today was 54,771 shares versus a 3-month average volume of 182,341 shares. The company’s trailing P/E is 46.55, while trailing earnings are $0.86 per share. About the company: Shanda Interactive Entertainment Ltd, operates online games in China. The Company offers a portfolio of online games that users play over the Internet. Shanda’s games are licensed from third parties as well as developed in-house.
  • Netease.com Inc. (NASDAQ:NTES): The shares recently traded at $47.19, down $1.1, or 2.28%. Its market capitalization is $6.16 billion. They have traded in a 52-week range of $35.20 to $55.00. Volume today was 308,447 shares versus a 3-month average volume of 1,026,380 shares. The company’s trailing P/E is 13.80, while trailing earnings are $3.42 per share. About the company: NetEase.com Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company provides online gaming services thatinclude in-house developed massively multi-player online role-playing games and licensed titles. NetEase also provides free email and various channels of content, online advertising, search and community services.

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