Brean Murray Carret & Co. Starts Sohu.com (SOHU) at Hold, Online Gaming Revenue Grew 150% Y/Y

Brean Murray Carret & Co. initiates coverage on shares of Sohu.com (NASDAQ: SOHU) with a Hold rating and no price target.

The company reported strong Q1 results on the back of solid revenue from both its online games and brand advertising. Online gaming revenue has grown ~150% Y/Y. SOHU now controls 16% of the total market share which places them in second place in the China online video game market.

Operating margins continue to face pressure as they declined 330 bps this past quarter.

SOHU released its Q2 guidance with a revenue range of $188-$193 million and an EPS range of $1.01-$1.08, which compares to the Street's estimates of $183 million and $1.10.

The firm reports that, "Sogou continues to post strong revenue traction, with search revenue posting a 21% Q/Q increase. Additionally, the company is guiding search revenue to hit $11 million for the quarter, which is a 38% increase sequentially."

For more ratings news on Sohu.com click here and for the rating history of Sohu.com click here.

Shares of Sohu.com closed at $104.14 yesterday.

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