SINA Corporation (SINA) Numbers Slashed at Maxim Group Amid Weak Guidance

Maxim Group analyst Echo He reiterated a Hold rating and cut estimates on SINA Corporation (NASDAQ: SINA) following Q1 results and weak guidance from the company.

He weighs in: "Last night, SINA reported 1Q14 revenue of $167.3M and non-GAAP EPS of $0.15, in line with its pre-announced results. Its total revenue guidance, $177M-$182M, was 9% below consensus and our estimate. In particular, ad revenue guidance of $152M-%155M was 5% below our estimate; Weibo revenue guidance of $74M-$76M was 12% below our estimate; and non-ad revenue guidance of $25M-$27M was 26% below our estimate. Management attributed revenue weakness to (1) weak macro environment, which was not consistently felt by comparable companies, and (2) impact from a potential revoke of SINA's licenses for online audio/video transmission and Internet publication. Recall that in late April, SINA received two notices from authorities that these two licenses were subject to being revoked due to inappropriate content on its reading website, book.sina.com.cn, and main portal site, www.sina.com.cn."

The firm is cutting revenue estimates of 2014, 2015, and 2016 by 6%, 9%, and 9%, respectively, to reflect likely lower than expected portal and Weibo revenue. They are lowering non-GAAP EPS estimates for the three years by 35%, 24%, and 11%, respectively, to $1.03, $1.65, and $2.86.

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 $47.86 yesterday.

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