Sina Earnings Gift: Not Lead Paint, But It's Socks (SINA)

Shares of Sina Corp. (NASDAQ:SINA) posted EPS at $0.28 on net income of $17.2 million, and earnings before items were $0.32 EPS on a non-GAAP basis.  Its revenues were $64.3 million.  First Call had estimates at $0.28 EPS on $64.5 million revenues. 

Revenue segments were in-line with estimates: Advertising revenue rose 40% to $45.8 million; non-advertising revenue fell 21% to $18.5 million; mobile service revenue fell 24% to $16.6 million (after Chinese government mandates went in place). Gross margins from year ago levels fell from 64% to 62%.

Sina put next quarter revenue guidance at $68 to $70 million. First Call has estimates at $69.56 million.  It also guided advertising revenues to be between $49.0 million and $50.0 million and non-advertising revenues to be between $19.0 million and $20.0 million. 

Chinese web, media, and mobile entertainment stocks are far from cheap.  The truth is that there is nothing majorly wrong with the report, but there was no significant solid report and definitely nothing overly exciting about this report.  Grandma didn’t give me the G.I Joe with the Kung Fu grip for Christmas.  She gave me cheap socks. 

Sina shares closed down 3.85% on their own in normal trading ahead of earnings today, and shares are down 5% to $47.00-ish in after-hours trading.  The 52-week trading range is $27.53 to $59.27.

Jon C. Ogg
November 14, 2007