It’s no secret, one of my favorite Chinese companies these days has been Weibo Corp. (WB). Before the opening bell today, Weibo posted its third-quarter results. In today’s blog, we’ll take a look at how Weibo did and what these results mean for you.
Formerly known as T.CN Corporation, Weibo was founded in 2009 and is headquartered in Beijing, China. It changed its name to Weibo in 2012, and it’s currently a subsidiary of SINA Corporation.
Weibo has experienced tremendous growth since its launch in 2010. Popularly known as "China’s answer to Twitter," Weibo is a social media company allowing Chinese users to express themselves, connect with others, discover Chinese-language content and use push notifications on their mobile devices. Weibo also offers online games and mobile apps.
Weibo operates as a social media platform for people to create, distribute and discover Chinese-language content. The company operates through two primary segments, Advertising/Marketing Services and Other Services.
Weibo offers self-expression products enabling its users to express themselves on its platform. Its social products promote social interaction between users, and its discovery products help users discover content on its platform.
The company also provides third-party online games, including role playing, card, strategy and real life simulation games. Furthermore, the company develops mobile apps comprising Weibo Headlines to aggregate news and information from Weibo and other online sources. In addition, it offers advertising and marketing solutions.
During the last quarter, Weibo’s total sales jumped 80.9% year-over-year to $320.0 million, compared with $176.9 million in the third quarter of 2016. The analyst community was looking for sales between $285.68 million and $301.0 million. So, Weibo posted a 6.3% sales surprise.
Over the same period, non-GAAP net income attributable to Weibo soared 111.0% from $54.6 million, or $0.24 per share, to $115.2 million, or $0.51 per share. The consensus EPS estimate was for earnings of $0.45 per share. So, Weibo also posted a 13.3% earnings surprise.
Plus, Weibo shared its financial outlook for the fourth quarter. The Chinese social media company is looking for revenue between $355 million and $365 million, which translates to 11% to 14% annual sales growth. This is above the current Wall Street view, which forecasts sales of $337.48 million, or 5% sales growth.
With an A-rating in Portfolio Grader, Weibo is still one of my favorite Chinese companies. That’s why my Blue Chip Growth members have access to my exclusive Buy Below price for this Internet behemoth.
But if you aren’t ready to join Blue Chip Growth today, I urge you to stay tuned into this blog throughout earnings season. I’ll continue examining the results of some of my favorite companies on the market today.