With its fourth-quarter 2013 operating earnings of $1.41 per share exceeding the Zacks Consensus Estimate by 34.5%, SouFun Holdings Ltd. ( SFUN ) has now delivered three consecutive quarters of positive surprises. Results also surged 86% year over year.CARDTRONICS INC (CATM): Free Stock Analysis ReportRENTRAK CORP (RENT): Free Stock Analysis ReportSOUFUN HLDG-ADR (SFUN): Free Stock Analysis ReportVIAD CORP (VVI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
The improvement was primarily driven by solid performance across all of SouFun's business divisions.
SouFun delivered earnings per share of $3.58 per share for full year 2013 on revenues of $637.4 million. While the top line improved 48% year over year, the bottom line exhibited an increase of 73%. The bottom-line results outpaced the Zacks Consensus Estimate by 7.8%.
The results marked the 4th consecutive year of delivering numbers that exceeded the company's guidance since it went public. Such impressive performance at the company thus prompted a 0.43% increase in the share price to close at $78.83 yesterday.
Behind the Headlines
Total revenue of SouFun grossed $217.2 million in the quarter, improving 47.2% year over year riding on growth in listing services, SouFun membership services and marketing services.
Going by segments, Marketing services revenues increased 21.0% driven by higher advertising spending. Revenues from e-commerce services soared 67.2% attributable to expansion of SouFun membership services in existing and new cities. Listing services revenues surged 91.5% fuelled by increased paying agent subscribers. Other value-added services revenue jumped 174.5% year over year.
While operating expenses moved up 20.6%, selling expenses rose 25.2% due to increased staff cost. General and administrative expenses also increased 15.4%.
Though expenses climbed up, a higher magnitude of revenue increase drove a substantial operating income improvement by 81%.
Adjusted earnings before income tax, interest expenses, interest income, depreciation and amortization (EBITDA) improved 76.1% year over year to $132 million.
SouFun exited 2013 with cash, cash equivalents, and short-term investments of $591.1 million, which grew substantially from $143.6 million as of Dec 31, 2012.
Cash flow from operating activities was $408.0 million in 2013, increasing 86.0% over 2012.
Long-term loans of the company stood at $181 million at the end of 2013, much higher than $81 million reported at the end of 2012.
SouFun expects to generate $780.0 million to $796.0 million in revenues in 2014. The estimates translate into a year-over-year increase of 22.5% to 25%.
SouFun presently sports a Zacks Rank #1 (Strong Buy).
Performance of Other Business Service Providers
Rentrak Corporation ( RENT ) delivered fourth-quarter 2013 operating loss of 3 cents per share better than the Zacks Consensus Estimate loss of 13 cents and year ago loss of 15 cents.
Cardtronics Inc . ( CATM ) reported fourth-quarter operating net earnings of 44 cents a share that beat the Zacks Consensus Estimate by a penny. However, the result increased from the prior-year quarter figure by 19%.
Viad Corp. ( VVI ) posted fourth-quarter loss per share of 20 cents, wider than the Zacks Consensus Estimate loss of 17 cents but narrower than the loss of 34 cents incurred in year-ago quarter.