Earnings Preview: Sohu.com Reports Q4 Results Monday

| About: Sohu.com Inc. (SOHU)
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Sohu.com Inc. (NASDAQ:SOHU) is due to report earnings before the opening bell on February 06, 2012. Below we can see the results of Sohu.com over the last few earnings periods. Sohu.com Inc., through its subsidiaries, engages in the brand advertising, sponsored search, and wireless businesses in China. The company was founded in 1996 and is headquartered in Beijing, the People's Republic of China.

52 Week High: $109.37
52 Week Low: $45.40
Book Value: $25.98
Float Short: 14.47%

Analysts are expecting an improvement of $0.06 in earnings per share compared to last quarter's results of $1.17. A beat of $1.23 per share will top the estimated per share earnings. Analyst estimates range between $1.17 and $1.29 per share.

The P/E ratio has been discounted, as the current trailing twelve months P/E ratio is 14.1, while the forward P/E ratio is now 11.43. An upside earnings report may put a lot of wind in the sails. In the last month, the stock has increased in price 23.64%, with a one year change of -16.32%. The stock is performing extremely well when compared to the general stock market up to this point. When comparing to the S&P 500, the year up to date positive change is 18.42%.

I have gone against the grain in some investors' eyes and declared I am bearish on all Chinese stocks listed in the United States. I do not believe there are enough safeguards to protect investors from fraud.

Management has provided an improvement of year-over-year revenue. Revenue reported was $612.78 million for 2010 vs. $515.24 million for 2009. The bottom line has rising earnings year-over-year of $148.63 million for 2010 vs. $147.83 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $230.53 million for 2010 vs. $204.39 million for 2009. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins in the earnings release to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:


Here is the last few quarters to get an idea how well they perform compared to estimates:

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for SOHU:


The number of days to cover short interest based on average daily trading volume for SOHU:


I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.