Can Sohu.com Meet These Numbers?

Seth Jayson, The Motley Fool
Updated

Sohu.com (NAS: SOHU) is expected to report Q2 earnings around July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sohu.com's revenues will increase 24.6% and EPS will compress 61.2%.

The average estimate for revenue is $247.7 million. On the bottom line, the average EPS estimate is $0.47.


Revenue details
Last quarter, Sohu.com tallied revenue of $226.6 million. GAAP reported sales were 30% higher than the prior-year quarter's $174.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.53. GAAP EPS of $0.53 for Q1 were 48% lower than the prior-year quarter's $1.01 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 64.9%, 820 basis points worse than the prior-year quarter. Operating margin was 23.0%, 1,330 basis points worse than the prior-year quarter. Net margin was 10.2%, 1,550 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $1.04 billion. The average EPS estimate is $2.61.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,167 members out of 1,251 rating the stock outperform, and 84 members rating it underperform. Among 275 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 give Sohu.com a green thumbs-up, and 27 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sohu.com is outperform, with an average price target of $67.14.

The article Can Sohu.com Meet These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Sohu.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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