Jefferies Still Sees Sina (SINA) as Buy Following Q3 Results; Weibo to Start Getting Ad Revs in Q212
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Price: $43.26 --0%
Rating Summary:
9 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
9 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Jefferies issued comments on Sina Corp. (Nasdaq: SINA) following third-quarter 2011 results. The firm maintains a Buy rating and $128 price target on the stock.
Sina reported non-GAAP revs of $125.6 million, in-line with guidance and Jefferies expectations. Non-Gaap net income increased 47 percent to $17.5 million, beating Street views by 14 percent and Jefferies expectations by 18 percent. The firm notes that lower operating expense contributed to the large beat.
Weibo said registered users have surpassed 250 million, with the new version expected to increased user engagement. Weibo should begin to monetize ads starting in the second-quarter of 2012, according to Jefferies. Sina sees three types of ads that could become viable: 1) interactive, targeted display ads, 2) social ads, and 3) search ads through Weibo Search.
Looking to the fourth-quarter, Jefferies commented, "Sina expects ad revenue at $103-$115mn, implying 25-27% Y/Y growth for Q411, and 27% growth for 2011. We forecast ad revenue to grow 27%/23% in FY11/FY12."
On the numbers, Jefferies is adjusting some expectations. The firm moves 2011 revs from $469 million to $466 million and non-GAAP EPS from 91 to 92 cents. In 2012, Jefferies lowered revs expectations from $575 million to $558 million, while EPS is boosted from $1.32 to $1.35.
For an analyst ratings summary and ratings history on SINA Corporation click here. For more ratings news on SINA Corporation click here.
Shares of SINA Corporation closed at $86.94 yesterday.
Sina reported non-GAAP revs of $125.6 million, in-line with guidance and Jefferies expectations. Non-Gaap net income increased 47 percent to $17.5 million, beating Street views by 14 percent and Jefferies expectations by 18 percent. The firm notes that lower operating expense contributed to the large beat.
Weibo said registered users have surpassed 250 million, with the new version expected to increased user engagement. Weibo should begin to monetize ads starting in the second-quarter of 2012, according to Jefferies. Sina sees three types of ads that could become viable: 1) interactive, targeted display ads, 2) social ads, and 3) search ads through Weibo Search.
Looking to the fourth-quarter, Jefferies commented, "Sina expects ad revenue at $103-$115mn, implying 25-27% Y/Y growth for Q411, and 27% growth for 2011. We forecast ad revenue to grow 27%/23% in FY11/FY12."
On the numbers, Jefferies is adjusting some expectations. The firm moves 2011 revs from $469 million to $466 million and non-GAAP EPS from 91 to 92 cents. In 2012, Jefferies lowered revs expectations from $575 million to $558 million, while EPS is boosted from $1.32 to $1.35.
For an analyst ratings summary and ratings history on SINA Corporation click here. For more ratings news on SINA Corporation click here.
Shares of SINA Corporation closed at $86.94 yesterday.
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