We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SINA Q2 Earnings and Revenues Surge Y/Y Driven by Weibo
Read MoreHide Full Article
SINA Corp.’s second-quarter 2017 non-GAAP earnings of 70 cents per share surged a massive 159.3% from the year-ago quarter while non GAAP net revenue grew 48% to $356.3 million.
We note that SINA’s shares have gained 47.2% in the past one year, vastly outperforming the industry, which gained 35% during the period.
Quarter Details
Advertising revenues moved up 44% year over year to $295.2 million, driven by the momentum of the Weibo segment. Non-advertising (non GAAP) revenues increased 68% year over year to $61.2 million.
Revenues from the Weibo (WB - Free Report) business surged 72.5% year over year to $253.4 million. Monthly active users increased 28% year over year to $361 million, driven by the increasing number of mobile users. At the end of the quarter, daily active users went up to 159 million, up 26.2% from the year-ago quarter.
Weibo non-ad revenues grew 77.7% to $35 million, mainly attributable to an increase in membership revenues. Weibo's ad revenues grew 71.7% to $218.3 million in the reported quarter.
Portal advertising revenues were down almost 1% year over year to $77.9 million. Portal non-advertising revenues increased 57% to $26.2 million on the back of the progress made in online payment business.
Non GAAP operating income was $115.5 million, which more than doubled year over year.
SINA exited the quarter with cash & cash equivalents (including short-term investments & restricted cash) of $2.4 billion compared with $2 billion as of Dec 31, 2016.
Cash provided by operating activities in the quarter was $238.3 million. Capital expenditure was $2.8 million.
SINA has extended the expiry period of its earlier announced (March 2016) $500 million share repurchase plan. The deadline will now set for Jun 2018.
Our Take
SINA has a strong product pipeline and is also investing in product development and marketing. Plus, strong performance of its Weibo platform continues to be a big positive.
Moreover, we believe that SINA will benefit from growth potential of e-commerce, e-banking, online payment and online entertainment services markets in China. Furthermore, the booming gaming market in China is also a positive.
We also believe that Weibo’s monetization ability will continue to be a major driving factor for SINA amid intensifying competition from the likes of Sohu.com Inc. ((SOHU - Free Report) ) and NetEase (NTES - Free Report) in the video and brand advertising market.
However, the company’s business is likely to be impacted by soft macroeconomic conditions in China. Also, significant restrictions on online search and other social-networking activities in the region remain concerns.
Recently, Chinese government reportedly had ordered shutdown of certain audio and video streaming on Weibo’s platform as these didn’t meet the government’s stringent regulations. On Jun 1, 2017, China implemented a tougher cyber security law which gives the government stronger control over online content.
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Image: Bigstock
SINA Q2 Earnings and Revenues Surge Y/Y Driven by Weibo
SINA Corp.’s second-quarter 2017 non-GAAP earnings of 70 cents per share surged a massive 159.3% from the year-ago quarter while non GAAP net revenue grew 48% to $356.3 million.
We note that SINA’s shares have gained 47.2% in the past one year, vastly outperforming the industry, which gained 35% during the period.
Quarter Details
Advertising revenues moved up 44% year over year to $295.2 million, driven by the momentum of the Weibo segment. Non-advertising (non GAAP) revenues increased 68% year over year to $61.2 million.
Revenues from the Weibo (WB - Free Report) business surged 72.5% year over year to $253.4 million. Monthly active users increased 28% year over year to $361 million, driven by the increasing number of mobile users. At the end of the quarter, daily active users went up to 159 million, up 26.2% from the year-ago quarter.
Weibo non-ad revenues grew 77.7% to $35 million, mainly attributable to an increase in membership revenues. Weibo's ad revenues grew 71.7% to $218.3 million in the reported quarter.
Portal advertising revenues were down almost 1% year over year to $77.9 million. Portal non-advertising revenues increased 57% to $26.2 million on the back of the progress made in online payment business.
Non GAAP operating income was $115.5 million, which more than doubled year over year.
Sina Corporation Price
Sina Corporation Price | Sina Corporation Quote
Balance Sheet and Cash Flow
SINA exited the quarter with cash & cash equivalents (including short-term investments & restricted cash) of $2.4 billion compared with $2 billion as of Dec 31, 2016.
Cash provided by operating activities in the quarter was $238.3 million. Capital expenditure was $2.8 million.
SINA has extended the expiry period of its earlier announced (March 2016) $500 million share repurchase plan. The deadline will now set for Jun 2018.
Our Take
SINA has a strong product pipeline and is also investing in product development and marketing. Plus, strong performance of its Weibo platform continues to be a big positive.
Moreover, we believe that SINA will benefit from growth potential of e-commerce, e-banking, online payment and online entertainment services markets in China. Furthermore, the booming gaming market in China is also a positive.
We also believe that Weibo’s monetization ability will continue to be a major driving factor for SINA amid intensifying competition from the likes of Sohu.com Inc. ((SOHU - Free Report) ) and NetEase (NTES - Free Report) in the video and brand advertising market.
However, the company’s business is likely to be impacted by soft macroeconomic conditions in China. Also, significant restrictions on online search and other social-networking activities in the region remain concerns.
Recently, Chinese government reportedly had ordered shutdown of certain audio and video streaming on Weibo’s platform as these didn’t meet the government’s stringent regulations. On Jun 1, 2017, China implemented a tougher cyber security law which gives the government stronger control over online content.
Currently, SINA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>