Boston, MA 08/18/2014 (wallstreetpr) – SINA Corp (NASDAQ:SINA) reported its second quarter revenues and earnings that were ahead of analysts’ estimates. The significant contribution came from its major asset Weibo Corp (ADR) (NASDAQ:WB). The revenue came at $184.4 million, up 20.7% year-over year, better than the analysts’ estimates of $180.0 million. The non-GAAP earnings came at $0.17 per share, down 23% comparable to the prior-year quarter.
However, it was better than the expectation of $0.9 per share. The second quarter revenue for Weibo Corp (ADR) (NASDAQ:WB) came at $77.3 million. The revenue from portal advertising came at $96.2 million, up 5.9% from the previous year quarter. The non-advertising revenue declined 11% to $28.6 million in the second quarter.
The lowered guidance
SINA Corp (NASDAQ:SINA) came up with the lower guidance for the third quarter. It gave the revenue guidance in the range of $193 million and $199 million. The analyst expected the revenue estimates to stay around $199.1 million. In the third quarter, again the higher expectations are from Weibo Corp (ADR) (NASDAQ:WB), that continues to be the strongest asset of the company. The analysts expect the overall growth rate to come in single digits in the next quarter. They expect Sina to deliver the revenues at the upper range of the guidance. It will be lower revenue growth in the third quarter.
The focus areas
The bottom line of SINA Corp (NASDAQ:SINA) will continue to underperform in the coming quarter. Weibo Corp (ADR) (NASDAQ:WB) will look to invest in the product development as well will like to boost up the sales and marketing initiatives. The focus will stay to enhance the performance from the portal business. It can opt for the internal expansion as well as can look to enter into the acquisitions to achieve the desired objective. If Sina manages to get a strategic partner or goes for a major acquisition, it can be a major boost for its stock price in the coming days.
