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China's Sohu.com Q1 revenue rises 4%, adjusted net loss narrows

Overview

China online media and gaming firm's Q1 revenue rose 4% yr/yr

Company posted GAAP net loss of $4 mln, narrowing non-GAAP loss from prior year

Sohu repurchased 8.7 mln ADSs for $116 mln under share buyback program

Outlook

Sohu sees Q2 marketing services revenues between $13 mln and $14 mln

Company expects Q2 online game revenues between $104 mln and $114 mln

Sohu projects Q2 net loss of $15 mln to $25 mln

Result Drivers

ONLINE GAME CONTENT - Co said Q1 online game revenue growth was driven by high-quality content and targeted operational refinements, especially for TLBB: Return

MARKETING SERVICES DECLINE - Co said marketing services revenues fell, but it continued to refine products and explore new monetization opportunities

OPERATING EXPENSES LOWER - Operating expenses decreased, partly due to absence of goodwill impairment charge that affected prior quarter

Company press release: ID:nPnbfJm1fa

Key Details

MetricBeat/MissActualConsensus Estimate
Q1 EPS-$0.17
Analyst Coverage The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell" The average consensus recommendation for the online services peer group is "buy." Wall Street's median 12-month price target for Sohu.com Ltd is $21.00, about 37.3% above its May 15 closing price of $15.30 For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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