U.S. shares of Chinese Internet portal Sohu.com were down as much as 15% Monday after it issued a disappointing first-quarter forecast, though its Q4 sales and earnings beat estimates. News from Investors.com
Sohu's majority-owned online game developer and operator Changyou.com also saw its shares fall 11% Monday after it issued Q4 results that beat sales and earnings estimates, but saw profits drop on one-time charges related to its cinema ad business.
For the fourth quarter, Beijing-based Sohu said it earned $1.36 a share, excluding items, up 10% from $1.23 a share in the year-earlier period.
But including options expenses and one items, Sohu said it earned 65 cents a share, down 39% from $1.07 a year earlier, and 59 cents below the $1.24 average estimate of 22 analysts polled by Thomson Reuters.
Sales surged 42% to $246.2 million. Analysts were expecting $243.75 million.
For full-year 2011, Sohu said non-GAAP net income rose 18% to $193 million, while sales jumped 39% to $852 million.
In Q1 Sohu sees adjusted earnings of 50 to 55 cents a share on revenue of $212 million to $225 million. Analysts were expecting Q1 earnings of $1.13 per share on revenue of $238.2 million.
For the fourth quarter, Beijing-based Changyou said it earned $1.21 per American depositary receipt, up 21% from $1.00 a share in the year-earlier period.
On a non-GAAP basis, Changyou earned $1.30 a share, up 44% from 90 cents in Q4 of 2010 and 20 cents above analyst forecasts. Sales surged 39% to $137.7 million.
For full-year 2011, Changyou said net income per ADR was $4.61, or $245.5 million, up 26%, while sales surged 37% to a record $484.6 million.
In Q1, Changyou expects non-GAAP earnings per ADR of between $1.08 and $1.12. Revenues are pegged between $130 million and $134 million, including online game revenues of $121 million to $124 million and online ad revenues of $7 million to $8 million.
Analysts were expecting EPS of $1.13 and sales of $128.4 million.
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