Before the stock market opened yesterday, Weibo Corporation (WB) topped analysts’ fourth-quarter estimates, as well as posted record 2017 results. Company management noted that Weibo “achieved an important milestone,” thanks to total revenues for fiscal year 2017 surpassing $1 billion. Today, we’ll take a look at what this “milestone” could mean for you…
For those of you who aren’t familiar with it, Weibo is popularly known as “China’s answer to Twitter.” Weibo is a social media company that allows 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. And since its launch in 2010, Weibo has experienced tremendous growth.
In fact, during the most recent quarter, sales soared 77.4% year-over-year to $377.4 million, up from $212.75 million in the fourth quarter of 2016. The company’s adjusted earnings per share surged 88.2% year-over-year to $0.64, compared with $0.34 in the same quarter a year ago. The analyst community was expecting earnings of $0.58 per share on $362.64 million in sales, so Weibo posted a 10.3% earnings surprise and a 4.1% sales surprise.
For fiscal year 2017, Weibo reported adjusted earnings per share of $1.80 on $1.5 billion in sales. That represents 119.5% annual earnings growth and 75.4% annual sales growth. And these results also beat analysts’ estimates for earnings of $1.71 per share on $1.13 billion in sales.
Weibo also shared its financial outlook for the first quarter. The Chinese social media company is looking for revenue between $335 million and $345 million, which translates to 68% to 73% annual sales growth. This is above the current Street view, which forecasts sales of $314.37 million.
Thanks to the strong quarterly results and forward-looking guidance, WB shares bounced have bounced higher yesterday and this morning.
But just because there’s a bounce doesn’t mean you should buy. If you’re interested in shares of Weibo, then I urge you to join my Blue Chip Growth service today.
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