Sina Earnings: Here’s Why Investors Like These Results

Sina Corp. (NASDAQ:SINA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.16%.

Sina Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 320% to $0.21 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 19.66% to $157.49 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sina Corp. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.12. It beat the average revenue estimate of $145.18 million.

Quoting Management: “I’m pleased with SINA’s performance in the second quarter.” said Charles Chao, Chairman and CEO of SINA. “Although the macro-economic conditions in China remain uncertain, our strategy to diversify SINA’s revenue stream to beyond big-brand advertisers and to leverage Weibo’s continued traffic growth to develop social and mobile advertising as well as value-added services is placing SINA in a good position for more profitable revenue growth while making heavy investments for the future.”

Key Stats (on next page)…

Revenue increased 25.02% from $125.97 million in the previous quarter. EPS increased 950% from $0.02 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 $0.29 to a profit $0.28. For the current year, the average estimate has moved up from a profit of $0.69 to a profit of $0.76 over the last ninety days.

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