Qihoo 360 Technology Earnings: Here’s Why Investors are Happy Now

Qihoo 360 Technology Co Ltd (NYSE:QIHU) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 9.77%.

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Qihoo 360 Technology Co Ltd Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 47.62% to $0.11 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Rose 23.85% to $85.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Qihoo 360 Technology Co Ltd reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $106.3 million.

Quoting Management: “We are very pleased with our strong first quarter results as we continue to demonstrate top-line growth and further progress our strategic initiatives,” commented Hongyi Zhou, Chairman and Chief Executive Officer of Qihoo 360. “We have further strengthened our leadership position across our key product categories. Monthly active users of our PC browsers reached a record 332 million, covering almost 70% of the Chinese PC Internet population. Additionally, we expanded our market share in mobile security and the number of Chinese smartphone users of 360 Mobile Safe, our key mobile security product, reached 275 million at the end of March. Our comprehensive mobile product portfolio provides us with a solid foundation to build a leading mobile Internet platform in China.”

Key Stats (on next page)…

Revenue decreased 16.66% from $102.95 million in the previous quarter. EPS decreased 50% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.23 to a profit $0.21. For the current year, the average estimate has moved down from a profit of $1.06 to a profit of $0.99 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)