Boston, MA 06/02/2014 (wallstreetpr) – SouFun Holdings Ltd (NYSE:SFUN) stock witnessed moments of panicky and frenzy as the stock dwindled and tumbled by more than 10% on May 30, 2014. The Chinese real estate portal was worried outright, owing to resilient price pressures from a significant price-slip.
Home Prices Drop – Prepping Concerns!
Home prices are dropping downwards in China; it reduced 15-20% in May, 2014 – the first noteworthy decline, since 2012-13! A wide gamut of properties across the lesser developed regions are being currently offered at lower prices, in a bid to remove excess inventory. Again, innumerable potential buyers are holding back their plans to buy the properties, anticipating far more price cuts! Consequently, real estate agents are increasingly pressurizing the SFUN portal, urging further tempering in the listed prices!
SFUN Announces Remarkable Quarterly Results
SouFun Holdings Ltd (NYSE:SFUN) has recently announced that the net revenue notched up in the previous quarter was 33. % in excess of the revenues, a year back! Net revenues during 2014 hovered around $121.2 million, driven by listing and marketing services.
In Q1-2014, the company garnered $47 million, a 31.2% hike year over year. SFUN also reported that it amassed $29.4 million revenues from its ecommerce services, depicting a whopping 11.6% rise, YoY! Revenues notched up from Value-Added-Services, and myriad Listing Services have been $2.7 & $42.1 million respectively. Cost of revenue witnessed an increase by a margin of 24.3%, estimating at $24.9 million in Q1-2014; consequently, surcharged, and additional taxes slumped up as well.
Expenses Rise, But Income Jumps 46%!
Gross selling margin saw a sustained increase in Q1-2014 in comparison to Q1-2013. Operating expenses increased 38.6% to $46.9 million, and the Administrative, and General Expenses soared up to $19.3 and $27.5 million respectively. The company’s net operating income dragged up higher by 33.1%, increasing to $49.5 million from merely $37.2 million in Q1-2013! SFUN overpowered its Q1-2013 income estimates by almost 46%, escalating to $41.5 million!
SFUN Beats Its Own Guidance Report Again!
Executive Chairman of SouFun Holdings Ltd (NYSE:SFUN), Vincent Mo, was extremely delighted as Q1-2014 evolved as the 14th successive quarter, wherein income had exceeded the company’s estimates over a large gamut! However, it is evident that the plunging home prices across major parts of China has evened this exquisite quarterly gain as the investors retracted from making further investments soon after the ‘Chinese Slip’ gained momentum!
