Sohu.com Inc. Third Quarter Earnings Sneak Peek

Sohu.com, Inc. (NASDAQ:SOHU) will unveil its latest earnings on Monday, October 31, 2011. Sohu.com is an Internet company that, through its subsidiaries, provides online products and services with news, information, entertainment and communication in China.

Sohu.com, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.18 per share, a rise of 10.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.19. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 28.5% versus last year to $4.65.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at profit of $1.10 a share versus the estimate of net income of $1.06 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $228.1 million in revenue this quarter, a rise of 39% from the year ago quarter. Analysts are forecasting total revenue of $834.3 million for the year, a rise of 36.1% from last year’s revenue of $612.8 million.

Analyst Ratings: eight out of 14 analysts surveyed (57.1%) have a buy rating on Sohu.com.. This is below the mean analyst rating of 10 competitors, which average 69% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose 32.3% to $44.3 million ($1.10 a share) from $33.5 million (82 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 36% to $198.7 million from $146.1 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 29.6%, with the biggest boost coming in the most recent quarter when revenue rose 36% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 48.4% in the first quarter and 35.9% in the fourth quarter of the last fiscal year.

Competitors to Watch: Baidu.com, Inc. (NASDAQ:BIDU), SINA Corporation (NASDAQ:SINA), Google Inc. (NASDAQ:GOOG), NetEase.com, Inc. (NASDAQ:NTES), Yahoo! Inc. (NASDAQ:YHOO), Ku6 Media Co., Ltd. (NASDAQ:KUTV), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), Youku.com Inc (NYSE:YOKU), and Rediff.com India Ltd. (NASDAQ:REDF).

Stock Price Performance: During August 29, 2011 to October 25, 2011, the stock price had fallen $21.37 (-27%) from $79.24 to $57.87. The stock price saw one of its best stretches over the last year between January 21, 2011 and February 2, 2011 when shares rose for nine-straight days, rising 27.5% (+$18.32) over that span. It saw one of its worst periods between February 10, 2011 and February 23, 2011 when shares fell for nine-straight days, falling 11.5% (-$10.37) over that span. Shares are down $5.62 (-8.9%) year to date.

(Source: Xignite Financials)

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