Sina Corp Earnings: Back in the Black

The Cheat Sheet

Sina Corporation reported its results for the fourth quarter. SINA is an online media company and mobile value-added information service provider in the People’s Republic of China and the global Chinese communities.

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Sina Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $9 million (14 cents per diluted share) in the quarter. Sina Corporation had a net loss of $100.1 million or a loss $1.62 per share in the year-earlier quarter.

Revenue: Rose 21.3% to $133.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sina Corporation fell short of the mean analyst estimate of 16 cents per share. It beat the average revenue estimate of $129.3 million.

Quoting Management: “SINA’s online brand advertising grew 27% to a historical high in 2011. The strong results of SINA’s brand advertising business have enabled SINA to make significant investments in Weibo.com. During the fourth quarter, the popularity of Weibo.com continued to grow, especially in the mobile and tablet space, where usage now exceeds those via personal computers,” said Charles Chao, CEO of SINA. “For 2012, we plan to further increase our investments in Weibo.com and leverage social media, user connections and portal leadership to improve the digital media experience in China.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.2%, with the biggest boost coming in the most recent quarter when revenue rose 21.3% from the year earlier quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 17 cents versus a mean estimate of net income of 16 cents per share.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from 14 cents per share to 12 cents. For the fiscal year, the average estimate has moved up from 71 cents a share to 72 cents over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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