Sina Corp. Earnings Cheat Sheet: Revenues Grow By Double-Digits

Rising costs hurt Sina Corporation (NASDAQ:SINA) in the second quarter as profit dropped from a year earlier. An online media company and mobile value-added information service provider in the People’s Republic of China and the global Chinese communities.

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Sina Earnings Cheat Sheet for the Second Quarter

Results: Net income for Sina Corporation fell to $10 million (15 cents per share) vs. $25.2 million (38 cents per share) a year earlier. This is a decline of 60.5% from the year earlier quarter.

Revenue: Rose 19.7% to $119 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SINA reported adjusted net income of 20 cents per share. By that measure, the company beat the mean estimate of 18 cents per share. It beat the average revenue estimate of $114.7 million.

Quoting Management: “SINA’s brand advertising business was robust in the second quarter, despite growing on top of a large base, in part benefiting from the elevation of SINA’s media brand as the popularity of Weibo.com spread in China,” said Charles Chao, CEO of SINA, “Launched less than two years ago, Weibo.com has become an online phenomenon with registered accounts recently surpassing 200 million.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.4%, with the biggest boost coming in the most recent quarter when revenue rose 19.7% from the year earlier quarter.

Gross margin shrank one percentage point to 57.4%. The contraction appeared to be driven by increased costs, which rose 22.4% from the year earlier quarter while revenue rose 19.7%.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 2 cents, and in the fourth quarter of the last fiscal year, it fell short by one cent.

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

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(Source: Xignite Financials)