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What Lies in Store for SINA Corp. (SINA) in Q2 Earnings?
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SINA Corporation is expected to report second-quarter 2016 results on Aug 8.
Last quarter, it posted a negative surprise of 125.00%. However, the company posted an average negative surprise of 80.40% over the trailing four quarters.
Let’s see how things are shaping up for this announcement.
Factors at Play
SINA’s business since the last quarter has been affected as a result of the non-renewal of the Alibaba contract. Moreover, the company has been seeing weakness in traditional brand advertising, especially for its portal business. The company also faces some challenges in its display advertising business owing to the ongoing transition from brand advertising to performance-based advertising. Furthermore, its business is also susceptible to be impacted by the soft macroeconomic conditions in China apart from the stringent restrictions on online search and other social-networking activities in the region.
Apart from this, intensifying competition from the likes of WeChat, Sohu.com (SOHU - Free Report) and NetEase (NTES - Free Report) remains an overhang on the stock.
Nonetheless, there can be some respite for SINA given its robust user base for its e-commerce and Weibo offerings. Also, a strong product pipeline and investment in product development and marketing are other positives.
Earnings Whispers
Our proven model does not conclusively show that SINA is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: SINA has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 1 cent.
Zacks Rank: SINA has a Zacks Rank #3 which, when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here’s a stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter
Mylan, Inc. has an Earnings ESP of +1.75% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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What Lies in Store for SINA Corp. (SINA) in Q2 Earnings?
SINA Corporation is expected to report second-quarter 2016 results on Aug 8.
Last quarter, it posted a negative surprise of 125.00%. However, the company posted an average negative surprise of 80.40% over the trailing four quarters.
SINA CORP Price and EPS Surprise
SINA CORP Price and EPS Surprise | SINA CORP Quote
Let’s see how things are shaping up for this announcement.
Factors at Play
SINA’s business since the last quarter has been affected as a result of the non-renewal of the Alibaba contract. Moreover, the company has been seeing weakness in traditional brand advertising, especially for its portal business. The company also faces some challenges in its display advertising business owing to the ongoing transition from brand advertising to performance-based advertising. Furthermore, its business is also susceptible to be impacted by the soft macroeconomic conditions in China apart from the stringent restrictions on online search and other social-networking activities in the region.
Apart from this, intensifying competition from the likes of WeChat, Sohu.com (SOHU - Free Report) and NetEase (NTES - Free Report) remains an overhang on the stock.
Nonetheless, there can be some respite for SINA given its robust user base for its e-commerce and Weibo offerings. Also, a strong product pipeline and investment in product development and marketing are other positives.
Earnings Whispers
Our proven model does not conclusively show that SINA is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: SINA has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 1 cent.
Zacks Rank: SINA has a Zacks Rank #3 which, when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stock to Consider
Here’s a stock that you may want to consider as our model shows that it has the right combination of elements to post an earnings beat this quarter
Mylan, Inc. has an Earnings ESP of +1.75% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>