iQIYI (IQ) Tops Q2 EPS by 21c, Offers Guidance, Announces SEC Investigation
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iQIYI (NASDAQ: IQ) reported Q2 EPS of ($0.28), $0.21 better than the analyst estimate of ($0.49). Revenue for the quarter came in at $1 billion versus the consensus estimate of $1.05 billion.
GUIDANCE:
iQIYI sees Q3 2020 revenue of $984.1-1000 million, versus the consensus of $1070 million.
- For the third quarter of 2020, iQIYI expects total net revenues to be between RMB6.95 billion (US$984.1 million) and RMB7.40 billion (US$1.0 billion), representing a 6% decrease to flat year over year. This forecast reflects iQIYI's current and preliminary view, which may be subject to change.
SEC Investigation
The SEC's Division of Enforcement is seeking the production of certain financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller firm Wolfpack Research in April 2020 ("Wolfpack Report"). The Company is cooperating with the SEC. We cannot predict the timing, outcome, or consequences of the SEC investigation.
In addition, shortly after the publication of the Wolfpack Report, the Company engaged professional advisers to conduct an internal review into certain of the key allegations in the Wolfpack Report and to report their findings to the Company's Audit Committee ("Internal Review"). These professional advisers have been examining the Company's books and records and undertaking testing procedures that, in their judgment, are necessary and appropriate to evaluating the key allegations in the Wolfpack Report, including accounting policy analysis, data analytics on whether the Company manufactured orders and inflated revenues and/or expenses. The Internal Review is ongoing and we cannot predict the timing for completion, outcome, or consequences of the Internal Review at this time.
For earnings history and earnings-related data on iQIYI (IQ) click here.
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