Earnings estimates cut -- goooooooooooooooes to $80 soooooooooon
Earnings estimates were cut for Q2, Q3 and 2014. Check yahoo site.
Why? because of the low earnings quality. QIHU's earnings quality is just like its product -- junk grade. Whatever "outperformance" is from acquisitions, with acquisition costs recorded as goodwill. Later you should expect a write-off as a non-cash charge. All accounting tricks. See you at $80.
Today's price action just proves my point: QIHU is nothing more than a momentum stock.
Was there any "outperformance?" Check this:
Nomura analysts Chao Wang and Liz Guan:
1Q non-GAAP EPS beat consensus by 45% and was in line with our estimate. However, excluding an USD28mn one-off gain, 1Q non-GAAP EPS was 40% lower than our expectation, mainly due to surging cost of sales and selling and market expenses we believe resulting from intensifying competition.
We cut 2014F/2015F non-GAAP EPS by 10%/13% to budget for more expenses especially related to pre-installation.
how many soon-to-be worthless Puts do you own on this Chinese dragon, bayou? I bet you are the same guy who called Baidu's earnings quality "poor" back in 2006 and then later in the winter of 2009... billions of eyeballs are winking at you now, bud...
you yourself check the yahoo site for earnings revision and tell me why estimates were going down. qihu was up not because of itself, but all momentum stocks were up -- nflx, pcln, etc. junk stocks were the group that rose most.