Is Qihoo 360 Back From China's Internet ADS Graveyard?
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) may be one of the top gainers after earnings today, but this stock has still never recaptured its post-IPO highs if you look back to the year after its initial public offering back in the first half of 2011.
Qihoo 360′s profit was at $0.17 per ADS and revenue was up more than 100% from a year ago to $72.8 million. Estimates were pretty much in-line with estimates of $0.17 per share and $72.6 million in sales. What seems to have really driven the stock was that sales for the coming quarter are expected to be in a range of $81 million to $82 million versus estimates of under $79 million.
We noted back at the time of the IPO just how wrong this one was priced. After all, Qihoo 360 closed out at $34.00 on its IPO launch but that was after a $14.50 per ADS pricing for about 14 million shares if you include its overallotment shares.
What is so interesting is that the IPO pricing basically held up during the China-IPO and China-web tank last summer and over the last year when so many companies were under fire over their accounting issues out of China. That was true even this July when shares dipped under $15… Now shares are up over 11% today at $23.50 after having closed at $21.10 just on Tuesday.
TheFlyontheWall reported this morning that Jefferies had raised its price target up to $35 from $27 after the gain. This may not reflect the upgrade today, but Thomson Reuters previously had a consensus price target of $29.73.
JON C. OGG
Filed under: 24/7 Wall St. Wire, ADR