Sina Misses on Estimates, Weibo Beats; Both Stocks End Lower
The stocks of Sina Corp. (Nasdaq: SINA) and its subsidiary, Weibo Corp. (Nasdaq: WB) ended down 4 percent Tuesday, at $64.51 and $69.72 per American depositary share, respectively, after the two companies disappointed investors with their performance reports for the fourth quarter.
In a statement today, Sina, a Beijing-based online media company, said its revenue in the three months through December reached $573 million, up 14 percent year-over-year. Net income was $16.4 million, or 22 cents per share, compared with $45.4 million in the same period of 2017. Both results missed analysts' estimates.
Sina said its operating expenses increased 29 percent to $319.9 million during the quarter.
For the full year, Sina reported $2.11 billion in revenue, an increase of 33 percent from 2017. Net income last year reached $125.6 million, or $1.70 per share, compared with $156.6 million in 2017.
Looking ahead, Sina said it expects to generate revenue in the range of $2.4 billion to 2.6 billion in 2019, representing a year-over-year increase of between 18 and 25 percent.
Sina's social media arm, Weibo, said its revenue grew 28 percent year-over-year to $481.9 million in the final quarter last year. Net income reached $166.5 million, or 73 cents per share, up 27 percent from the same period of 2017. The figures were better than predicted by analysts but left investors unimpressed nevertheless.
"Weibo continued to expand user base and enhance user engagement amid fierce industry competition, with MAUs adding approximately 70 million during the year," the company's chief executive officer, Gaofei Wang, said in a statement today.
Weibo reported it had 462 million monthly active users (MAUs) as of December, 93 percent of which were mobile users. The number of average daily active users reached 200 million, it said.
For the full year, Weibo said its revenue was $1.7 billion, an increase of 49 percent year-over-year. Net income was $571.8 million, up 62 percent from 2017.
Weibo forecast revenue in the range of $395 million and $405 million for the first quarter, representing year-over-year increase of between 21 and 24 percent.
Wang concluded, "Heading into 2019, Weibo will continue to invest in platform development in multi-dimension, reinforce social content ecosystem to empower content creators, and capture higher wallet share in digital advertising budget as well as diversify monetization opportunities in the long run."