Eye Catching Stock: Sohu.com Limited (NASDAQ:SOHU)

Sarah Gleason

Sohu.com Limited (NASDAQ:SOHU) changed -26.84% to recent value of $8.94. The stock transacted 2256001 shares during most recent day however it has an average volume of 363.87K shares. It spotted trading -65.56% off 52-week high price. On the other end, the stock has been noted -25.87% away from the low price over the last 52-weeks.

On Aug. 5, 2019,  Sohu.com Limited (NASDAQ: SOHU) China’s leading online media, video, search and gaming business group,  notified unaudited financial results for the second quarter ended June 30, 2019.

Second Quarter Highlights

•Total revenues were US$475 million[1], down 2% year-over-year and up 10% quarter-over-quarter.

•           Brand advertising revenues were US$44 million, down 29% year-over-year and up 2% quarter-over-quarter.

•Search and search related advertising revenues[2] were US$276 million, up 2% year-over-year and 18% quarter-over-quarter.

•Online game revenues were US$102 million, up 8% year-over-year and 3% quarter-over-quarter.

•Operating loss for Sohu Video was US$23 million, compared with a loss of US$35 million in the second quarter of 2018.

•GAAP net loss attributable to Sohu.com Limited was US$53 million, compared with a net loss of US$48 million in the second quarter of 2018.

•Non-GAAP net loss attributable to Sohu.com Limited was US$50 million. Excluding a charge for impairment of assets recognized by Changyou in the second quarter of 2019 related to the cinema advertising business, Non-GAAP net loss attributable to Sohu.com Limited was US$38 million, compared with a net loss of US$49 million in the second quarter of 2018.

•Excluding the profit/loss generated by Sogou and Changyou, the Non-GAAP net loss attributable to Sohu.com Limited was US$68 million, compared with a net loss of US$80 million in the second quarter of 2018.

[1] On a constant currency (non-GAAP) basis, if the exchange rate in the second quarter of 2019 had been the same as it was in the second quarter of 2018, or RMB6.38=US$1.00, US$ total revenues in the second quarter of 2019 would have been US$507 million, or US$32 million more than GAAP total revenues, and up 4% year-over-year.

[2] Search and Search related advertising revenues exclude intra-Group transactions.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, Under the current challenging macroeconomic environment, our total revenues stayed largely in-line with our prior guidance. Our bottom line performance, excluding the charge for impairment of assets recognized by Changyou related to its cinema advertising business, met the high-end of our prior guidance. This was mainly driven by the continued cost savings that we were able to achieve at Sohu Video, and the solid performance of our online game business. Sohu Media is making a comeback and living up to its reputation as a top tier media platform. We have been hosting high-quality events, generating and distributing premium content, and strengthening our core competitiveness and credibility among media brands. Meanwhile, Sohu Video continues to provide users with unique, high-quality dramas and shows. We have seen the positive effects of this differential development strategy and stable improvements in monetization at both Sohu Media and Sohu Video. We hope to see further progress in the coming quarters. In the second quarter of 2019, Sogou achieved steady growth in its core search business while Sogou Mobile Keyboard further expanded its user base and contributed a larger portion to total revenues. As for Changyou, both its revenue and profit exceeded expectations, excluding the aforementioned charge for impairment. Changyou is demonstrating a stable profitability while developing more games to provide a diversified product portfolio.

 SOHU has a gross margin of 42.40% and an operating margin of -9.40% while its profit margin remained -6.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained 61.00% for this year while earning per share for the next 5-years is expected to reach at 6.74%.

 The company has 39.07M of outstanding shares and 30.47M shares were floated in the market. According to the most recent quarter its current ratio was 1.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of -31.81% from the mean of 20 days, -34.50% from mean of 50 days SMA and performed -48.87% from mean of 200 days price. Company’s performance for the week was -29.55%, -35.54% for month and YTD performance remained -48.68%.

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