Youku Tudou Earnings: Here’s Why Investors Don’t Like These Results

Youku Tudou (NYSE:YOKU) had a loss and beat Wall Street’s expectations, BUT 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 down 4.72%.

Youku Tudou Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.10 in the quarter versus EPS of $-0.54 in the year-earlier quarter.

Revenue: Rose to $122.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Youku Tudou reported adjusted EPS loss of $0.10 per share. By that measure, the company beat the mean analyst estimate of $-0.74. It missed the average revenue estimate of $752.71 million.

Quoting Management: “Multi-screen video consumption is a game changer for Internet television as it offers video anytime, anywhere on any device. We are leveraging our top-of-mind video brand awareness, comprehensive content library and cross-screen product functionalities to extend our leading presence across different screens. With users watching Internet videos on multiple screens becoming the standard in China, Youku Tudou is at the center of exciting growth opportunities for the long term,” said Victor Koo, Chairman and Chief Executive Officer of Youku Tudou. “Youku Tudou is moving full speed ahead in multi-screen online video services. Mobile traffic growth is fast gaining traction ahead of our expectations with daily video views growing more than 100% in the last six months. The combination of dynamic growth in mobile traffic and the vast scale of our traffic on PC positions us as the clear leading multi-screen online video company in China.”

Key Stats (on next page)…

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 loss of $0.43 to a loss $0.53. For the current year, the average estimate has moved down from a loss of $2.43 to a loss of $2.91 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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