Sohu.com (SOHU) Posts Q1 Loss

Sohu.com Inc. (SOHU) shares are down nearly 4% to $65 in pre-market trading Monday after the company reported its first quarter earnings results.

The Beijing-based Web portal posted earnings of ($0.81) per share on revenues of $455 million, up 24.7% from a year ago. Analysts were expecting EPS of ($0.88) on revenues of $437.33 million. For the current quarter ending in June, GAAP net loss was $31 million, or $0.81 per share, compared with net loss of $78.8 million, or $2.05, in the first quarter of 2014.

Ms. Carol Yu, President and CFO of Sohu.com Inc. commented, “In the first quarter, our overall financial performance was better than we had expected. Notably, Sogou continued to deliver robust revenue growth coupled with decent profit. For Sohu Media Portal, we made good progress on developing more small and medium enterprise customers and deriving increased revenues from them. For Changyou, TLBB PC and 3D mobile games both performed well and its margin rebounded meaningfully from 2014. For the rest of 2015, we will continue to invest in key initiatives which can drive our long-term growth while keep a streamlined cost structure.”

For Q2/15, Sohu provided revenue guidance of $460 – $490 million versus consensus of $494.08 million.

Profitability-wise, the company has a t-12 profit and operating margin of (9.96%) and (9.13%), respectively. The $2.60 billion market cap company reported $1.1 billion in cash in its most recent quarter, essentially flat on a year-over-year basis.

SOHU currently prints a one year return of about 14% and a year-to-date return of around 27%.

The chart below shows where the equity has traded over the last 52 weeks.

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