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Why Is SouFun (SFUN) Up 2.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for SouFun (SFUN - Free Report) . Shares have added about 2.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is SouFun due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Fang Holdings Reports Q2 Loss

Fang Holdings reported second-quarter 2019 non-GAAP net loss of 2 cents per share. Total revenues came in at $67.6 million.

Revenues in Detail

Marketing services revenues of $32.5 million increased 19.3% from the year-ago quarter on the back of Fang's efforts in customer development.

Listing services revenues of $19.2 million decreased 26% due to lower number of paying members.

Revenues from leads generation services came in at $10.8 million compared with $2.8 million in the prior-year quarter on the back of increased effectiveness of service and customer development.

Revenues from value-added services came in at $1.7 million, up 19.9% from the prior-year quarter.

Financial services revenues of $2.6 million declined 3.2% from the year-ago quarter.

Revenues from e-commerce services decreased 75.7% year over year to $0.8 million. 

Profitability Performance

Gross profit decreased 8% from the year-ago quarter to $59.3 million. Operating income from continuing operations came in at $29.0 million in the reported quarter against operating loss of $9.6 million in the prior-year quarter, owing to a decline in operating expenses.

Operating expenses of $30.3 million decreased 53% year over year due to lower bad debt and staff costs. Selling expenses of $16.1 million increased 12.5% year over year. General and administrative expenses decreased to $15.7 million from $50.7 million in the year-ago quarter due to a decline in bad debt and staff cost.

Balance Sheet

Fang Holdings exited second-quarter 2019 with cash and cash equivalents, restricted cash (current and non-current) and short-term investments of $500.6 million compared with $477.1 million at the end of the prior quarter. Long-term loan was $119.5 million compared with $122.47 million at the end of the prior quarter. 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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