SINA Corporation’s first-quarter 2018 non-GAAP earnings of 47 cents per share beat the Zacks Consensus Estimate by a couple of cents but declined 3 cents from the year-ago quarter.
Net revenues grew 59% to $441 million and beat the Zacks Consensus Estimate of $440 million. Non-GAAP net revenues also grew 59% to $438.1 million.
Quarter Details
Advertising revenues surged 61% year over year to $367.1 million, driven by the momentum in the Weibo segment. Non-advertising (non GAAP) revenues increased 50% year over year to $71.1 million driven by growth in fintech business as well as increased revenues from Weibo gaming and membership.
Revenues from Weibo business surged 75.6% year over year to $349.8 million. Monthly active users increased 20.7% from the year-ago quarter to 411 million, driven by an increasing number of mobile users. At the end of the quarter, daily active users went up to 184 million, up 19.5% from the year-ago quarter.
Weibo non-ad revenues grew 57% to $46.9 million on the back of increased membership and gaming revenues. Weibo's ad and marketing revenues grew 79% to $302.9 million in the reported quarter.
Portal advertising revenues were up 7% year over year to $64.1 million driven by increased mobile transition and monetization. Mobile app revenues for portal accounted for 77% of total portal ad revenues compared with 53% in the year-ago quarter. The upside is attributed to growth in mobile traffic for SINA News and Finance applications. Daily Active Users for News app and Finance app increased 31% and 40%, respectively.
Portal non-advertising revenues increased 38% to $24.1 million. However, stricter regulation in micro-lending sector continues to remain an overhang.
Margins
Non-GAAP operating income was $94.6 million, which surged 49% year over year. However, non-GAAP operating margin of 22% declined 100 basis points from the year-ago quarter.
Increase in sales and marketing expenses to increase Weibo and SINA news app users and a rise in product development cost remain dampeners.
Balance Sheet and Cash Flow
SINA exited the quarter with cash & cash equivalents (including short-term investments & restricted cash) of $3.64 billion compared with $3.59 billion as of Dec 31, 2017.
Cash provided by operating activities in the quarter was $54.9 million. Capital expenditure was $36.2 million.
Zacks Rank & Stocks to Consider
SINA currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Micron Technology (MU - Free Report) and Western Digital (WDC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for Lam Research, Micron and Western Digital is projected to be 17.7%, 10% and 19%, respectively.
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SINA Corporation’s first-quarter 2018 non-GAAP earnings of 47 cents per share beat the Zacks Consensus Estimate by a couple of cents but declined 3 cents from the year-ago quarter.
Net revenues grew 59% to $441 million and beat the Zacks Consensus Estimate of $440 million. Non-GAAP net revenues also grew 59% to $438.1 million.
Quarter Details
Advertising revenues surged 61% year over year to $367.1 million, driven by the momentum in the Weibo segment. Non-advertising (non GAAP) revenues increased 50% year over year to $71.1 million driven by growth in fintech business as well as increased revenues from Weibo gaming and membership.
Revenues from Weibo business surged 75.6% year over year to $349.8 million. Monthly active users increased 20.7% from the year-ago quarter to 411 million, driven by an increasing number of mobile users. At the end of the quarter, daily active users went up to 184 million, up 19.5% from the year-ago quarter.
Weibo non-ad revenues grew 57% to $46.9 million on the back of increased membership and gaming revenues. Weibo's ad and marketing revenues grew 79% to $302.9 million in the reported quarter.
Portal advertising revenues were up 7% year over year to $64.1 million driven by increased mobile transition and monetization. Mobile app revenues for portal accounted for 77% of total portal ad revenues compared with 53% in the year-ago quarter. The upside is attributed to growth in mobile traffic for SINA News and Finance applications. Daily Active Users for News app and Finance app increased 31% and 40%, respectively.
Portal non-advertising revenues increased 38% to $24.1 million. However, stricter regulation in micro-lending sector continues to remain an overhang.
Margins
Non-GAAP operating income was $94.6 million, which surged 49% year over year. However, non-GAAP operating margin of 22% declined 100 basis points from the year-ago quarter.
Increase in sales and marketing expenses to increase Weibo and SINA news app users and a rise in product development cost remain dampeners.
Balance Sheet and Cash Flow
SINA exited the quarter with cash & cash equivalents (including short-term investments & restricted cash) of $3.64 billion compared with $3.59 billion as of Dec 31, 2017.
Cash provided by operating activities in the quarter was $54.9 million. Capital expenditure was $36.2 million.
Zacks Rank & Stocks to Consider
SINA currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Micron Technology (MU - Free Report) and Western Digital (WDC - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Long-term earnings growth rate for Lam Research, Micron and Western Digital is projected to be 17.7%, 10% and 19%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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