Feb. 1, 2010 (Chinavestor) Sohu.com (NASDAQ:SOHU) has been the unofficial opener of the earnings season for China stocks - just as is Alcoa Inc. (NYSE:AA) for U.S .companies. Chills ran through the spine of investors this morning while reading Sohu's numbers for the fist time. Revenues, earnings fell while outlook lowered. Result: shares of Sohu.com fell -7.5% before the bell.
As the chart testifies despite a plateau in revenues and earnings for the latest quarter, Sohu.com (NASDAQ:SOHU) has been largely successful in growing the company in the last three years. Remember, investors prefer stocks like Sohu.com (NASDAQ:SOHU) - companies that deliver resilient revenue and earnings/profit growth. A relatively constant top and bottom line growth builds confidence that the company is run well and management is able to keep costs under control, even when good times are rolling.
Another important aspect of the chart is the price development of Sohu.com shares. Trading at $50/share at the moment means P/E remains very modest for the company at 11.78 times earnings. All told, short term weakness is likely to stay nevertheless Sohu.com (NASDAQ:SOHU) remains a value stock for the medium to long term buyer. Wish you successful investing!
China stocks earnings calendar Part 1
For complete earnings calendar visit February 2010 Newsletter: Too much anxiety on the bottom
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