Chinese web portal Sina Corporation (NASDAQ: SINA) beat consensus reports by $0.7 in its earnings announcement for the first quarter. The company reported earnings per share at $0.34 on an 18.8 percent increase in revenues over the year-ago quarter. For the prior year quarter, the company reported $0.17 per share.
Sina reported net income of $24.4 million on $85 million in revenues, in line with analyst expectations.
The earnings results were led by an increase in advertising revenues, which grew faster than the cost of revenues. The company provided guidance between $90 and $93 million in revenue for the next quarter; analysts expect $93.47 million.
“SINA performed very well in the first quarter, driven by the strength of our online advertising business. Excluding the adjusted results of SINA real estate online advertising business, our online brand advertising business grew 47% year over year,” said Charles Chao, CEO of SINA. “We expect the momentum in our online advertising business to continue to benefit from our leading market position and an expected continuing recovery of the Chinese economy.”
The company is located in Shanghai.
After the announcement, the stock edged up to its previous close.
Comments: SINA revised its earnings starting in the fourth quarter of 2009, making comparisons difficult. Advertising revenues (Sina’s growth business) decreased from the prior quarter by about $10 million; gross profit also decreased by about 8 million. The company expects a good return from its investment in RE advertising company CRIC; however, it’s not possible to get a good read on the company from its revised statements. Looking at the technicals, there is nothing to really recommend this stock. Looks like more downside for SINA.
Disclosure: No positions