SINA Profit Tops Estimates, Stock Rises - Update

(RTTNews.com) - SINA Corp. ( SINA ), a provider of online media and mobile value-added services in China, on Tuesday reported lower profit for the fourth quarter, amid a modest rise in revenue. Adjusted earnings topped Wall Street estimates. The stock surged in the extended session.

Net income attributable to SINA for the quarter plunged to $2.4 million or $0.03 per share from $9.3 million or $0.14 per share for the same period last year.

Adjusted earnings totaled $0.13 per share, while it amounted to $0.21 per share in the previous year. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter rose 4 percent to $139.13 million from $133.4 million. Non-GAAP net revenues for the fourth quarter of 2012 totaled $134.4 million, up from last year's $128.7 million. Analysts had a consensus revenue estimate of $133.86 million for the quarter.

Advertising revenues grew 7 percent to $110.7 million from $103.7 million. Non-advertising revenues slipped 4 percent to $28.5 million.

Gross margin for the fourth quarter was 57 percent, compared to 54 percent for the same period last year. Operating expenses climbed to $73.8 million from $66.7 million.

The company estimates that its non-GAAP net revenues for the first quarter of 2013 will be between $115 million and $119 million. This excludes the recognition of $4.7 million in deferred license revenues related to SINA's equity investment in E-House/CRIC. Analysts have consensus revenue estimate of $117.39 million for the first-quarter.

SINA closed at $53.48 on Tuesday, down 4.5 percent from the previous close, but added 6.4 percent in the extended session.

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