In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from SOHU and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
In the last quarter it reported $0.53 EPS, beating analyst estimates of $0.48.
The consensus EPS estimate is $0.39 based on 9 analysts' estimates, down from $1.10 a year ago. Revenue estimates are $248.09M, up from $198.70M a year ago. The median target price by analysts for the stock is $61.00.
Average recommendation: Overweight
- On May 24, 2012, Sohu.com Inc. announced that its online game subsidiary, Changyou.com Limited ("Changyou") (NASDAQ: CYOU) began open beta testing of Tao Yuan, an inhouse-developed 3D turn-based martial-arts massively multi-player online role-playing game ("MMORPG") on May 24, 2012.
- On April 30, 2012, SOHU.com announced that for the second quarter of 2012, it estimates total revenues to be between USD244-USD250 million, non-GAAP net income to be between USD34-USD37 million and non-GAAP fully diluted earnings per share (EPS) to be between USD0.40-USD0.45. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $251 million, net income of $32 million and EPS of $0.81 for the second quarter of 2012.
- On February 6, 2012, SOHU.com announced that for the first quarter of 2012, it expects total revenues to be between USD219-USD225 million, non-GAAP net income to be between USD38-USD41 million. and non-GAAP fully diluted earnings per share to be between USD0.50-USD0.55. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $238 million, net income of $45 million and EPS of $1.13 for the first quarter of 2012.
Baidu (BIDU) and SINA Corporation (SINA) are considered major competitors for Sohu but I will also add Google (GOOG) and Yahoo! (YHOO) as western peers for comparison, and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
Competitors' Latest Development
- On July 31, 2012, Reuters reported that Google Inc. said on July 31, 2012 it acquired marketing start-up Wildfire. Google Inc paid about $250 million for the business, according to a person familiar with the deal.
- On July 23, 2012, The Economic Times reported that Apple Inc and Google Inc's Motorola Mobility unit filed separate appeals of a federal judge's June 22 order dismissing their mutual patent- infringement claims.
- On July 23, 2012, Baidu, Inc. announced that it currently expects to generate total revenues in an amount ranging from RMB6.245 billion ($983.0 million) to RMB6.410 billion ($1.009 billion) for the third quarter of 2012.
- On July 16, 2012, Yahoo! Inc. announced that it has appointed Marissa Mayer as President and Chief Executive Officer and Member of the Board of Directors effective July 17, 2012.
- On July 10, 2012, Reuters reported that Google Inc. is close to paying $22.5 million to settle charges that it bypassed the privacy settings of customers using Apple's Safari browser, the Wall Street Journal reported, citing officials briefed on the settlement terms.
- On July 6, 2012, Yahoo! Inc. And Facebook Inc announced that they have entered into definitive agreements that launch a new advertising partnership, extend and expand distribution arrangements, and settle all pending patent claims between the companies.
- On July 6, 2012, Reuters reported that the race to become Yahoo! Inc.'s next Chief Executive (CEO) appears to have come down to two candidates, current interim CEO Ross Levinsohn and Hulu CEO Jason Kilar.
- On July 4, 2012, The Economic Times reported that Google Inc. has announced closure of five of its products, including iGoogle, Google Video and Google Chatback, in order to streamline its business.
- On July 2, 2012, Reuters reported that Google Inc. has offered to settle antitrust charges following an ultimatum by EU regulators investigating its business practices, in a move that could stave off a hefty fine.
- On June 30, 2012, Reuters reported that U.S. antitrust regulators are investigating whether Google Inc. unit Motorola Mobility is living up to licensing commitments made when its patents were adopted as industry standards.
- On June 28, 2012, Yahoo! Inc. and Clear Channel Media and Entertainment, a media company in America, announced an agreement that will enhance the way music, as well as entertainment news and information, is delivered across digital platforms in the U.S.
- On June 27, 2012, Reuters reported that Google Inc. has unveiled its first tablet PC. The Nexus 7 tablet has been built and co-branded in partnership with hardware maker Asus.
- On June 24, 2012, Reuters reported that Research In Motion, Ltd. is considering splitting its business in two, separating its struggling handset manufacturing division from its messaging network, The Sunday Times reported.
- On June 23, 2012, Reuters reported that a U.S. judge on Friday ruled that Apple Inc. cannot pursue an injunction against Google Inc.'s Motorola Mobility unit, effectively ending a key case for the iPhone maker in the smartphone patent wars.
- On June 20, 2012, Reuters reported that Yahoo! Inc. and Facebook Inc believe settlement talks in a high profile patent lawsuit would be helped if a U.S. judge pushed back certain deadlines in the case, according to a court filing on Tuesday.
- On June 14, 2012, Reuters reported that a U.S. judge has agreed to hear Apple Inc's request for an injunction against the sale of some Motorola phones, giving the iPhone maker a chance to head off a damaging ruling in the smartphone patent wars.
- On June 13, 2012, Reuters reported that Apple Inc must defend against a lawsuit accusing it of letting advertisers secretly track the activity of millions of mobile device users, a federal judge ruled, but Google Inc and several other defendants were dismissed from the case.
- On June 13, 2012, Yahoo! Inc. and CNBC announced a strategic alliance that will expand CNBC's online reach and presence and provide a broadcast platform for Yahoo! Finance's original content and contributors.
- On June 5, 2012, Dow Jones reported that Google Inc. on Tuesday announced it acquired Quickoffice, the mobile-productivity software suite known for its Android and iOS document-editing applications.
- On June 5, 2012, Reuters reported that Google Inc. will buy Meebo Inc, a startup that helps online publishers connect their websites with social network sites, Meebo said on its blog.
- On June 1, 2012, Google Inc. announced that it has filed a complaint with the European Commission against Nokia Oyj and Microsoft Corp. Google has accused Nokia Oyj and Microsoft Corp of colluding against rivals in the use of their smartphone patents.
- On May 29, 2012, Reuters reported that a French court ruled that Google Inc. is not responsible for filtering content on YouTube, asTF1 - Television Francaise 1 SA sought damages for copyrighted sports and movies which ended up on the video-sharing website.
- On May 24, 2012, Reuters reported that a German regional court ruled in a hearing on Thursday that Google Inc.'s Motorola Mobility infringed Microsoft Corp patents by offering the option on its mobile phones to send a longer text in a batch of several messages.
- On May 23, 2012, Reuters reported that Google Inc.'s Android mobile platform has not infringed Oracle Corporation's patents, a California jury decided, putting an indefinite hold on Oracle's quest for damages in a legal fight between the two companies over Smartphone technology.
- On May 22, 2012, Google Inc. announced that the acquisition of Motorola Mobility Holdings, Inc.(MMI) has closed, with Google acquiring MMI for $40.00 per share in cash.
- On May 22, 2012, Reuters reported that Yahoo! Inc. will sell as much as half of its 40% stake in Chinese e-commerce powerhouse Alibaba Group for $7.1 billion, ending years of fractious talks over how to extract value from its most prized asset.
- On May 21, 2012, Reuters reported that the European Union's antitrust Chief on Monday ratcheted up the pressure on Google Inc., giving it a matter of weeks to settle an investigation into allegations of anti-competitive behaviour and avoid formal charges and a possible fine.
- On May 21, 2012, Yahoo! Inc. and Alibaba Group Holding Limited announced they have entered into definitive agreement for a staged and comprehensive value realization plan for Yahoo!'s stake in Alibaba.
- On May 20, 2012, Reuters reported that Google Inc. said on Saturday that Chinese authorities have approved its $12.5 billion purchase of Motorola Mobility Holdings Inc. Google, announced plans for the acquisition last year.
- On May 17, 2012, Reuters reported that Iran's Foreign Ministry threatened on Thursday to take legal action against Google Inc. for dropping the name Persian Gulf from its Google Maps and leaving the waterway between Iran and Arab states nameless, state television reported.
- On May 13, 2012, Yahoo! Inc. announced that the Board of Directors has named Fred Amoroso as Chairman of the Board of Directors and Ross Levinsohn as interim Chief Executive Officer , effective immediately.
- On May 8, 2012, Reuters reported that Google Inc. infringed some of Oracle Corp's copyrights on the Java programming language, a U.S. jury found on Monday after days of deliberation.
- On May 7, 2012, The Wall Street Journal Online reported that India has launched an antitrust probe of Google Inc.'s online advertising business to investigate potential anticompetitive practices, government officials familiar with the matter say, marking the latest setback for the Internet company in an emerging market where it has lofty ambitions.
- On May 7, 2012, Rompres reported that five new United States companies will be listed on the Alternative Trading System of the Bucharest Stock Exchange International Department, starting on May 10, 2012.
- On May 5, 2012, Reuters reported that Yahoo! Inc. could be weeks away from selling 15% to 25% of Alibaba Group's stock back to the company, in a deal designed to eliminate complexities that had scuttled the parties' previous negotiations.
The stock has a market capitalization of $1.34B and is currently trading at $35.30 with a 52 week range of $33.75 - $84.00. The stock's year-to-date performance has been -29.40%. It is currently trading below 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.