Sohu.com Earnings May Guide Chinese Web Stocks (SOHU, BIDU, NTES)

On Monday evening, we’ll get to see earnings out of Sohu.com Inc. (NASDAQ: SOHU). The estimates from First Call for the Chinese online search and advertising company $55.42 million in revenues.  Estimates for fiscal 2008 appear to be $1.55 EPS on $272.55 million in revenues.

As a reminder, the company just raised guidance back in December to $0.36 to $0.38 non-GAAP EPS on revenues of $55.5 to $57.5 million, with its non-advertising revenues at $24.5 to $25.5 million.  This is also after the company stock did so well after its last earnings.

Analysts have an average price target upwards of $62. If Friday’s closing prices are any indicator and if the earnings were coming out immediately, it appears that options traders would be pricing in a move of up to $4.00 in either direction. We are a bit cautious in using that as a firm number because of the activity in web stocks on Friday.  You can bet that Baidu.com (NASDAQ: BIDU) and Netease (NASDAQ: NTES) will be watching this earnings report closely.

As Sohu is a Chinese Internet stock, this one was up big on Friday after the announcement of the largest merger of the Internet as far as total reach.

Sohu.com’s 52-week trading range is $20.94 to $64.83.

Jon C. Ogg
February 2, 2008