Stock to Keep Your Eyes on: SouFun Holdings Ltd. (NYSE:SFUN)

SouFun Holdings Ltd. (NYSE:SFUN) reported earnings for the three months ended March 2016 on June 02, 2016. The company earned $-0.24 per share on revenue of $204.62M. Analysts had been modeling earning per share of $-0.12 with $191.05M in revenue.

SouFun Holdings Ltd. (NYSE:SFUN) announced its unaudited financial results for the three months ended March 31, 2016.

First Quarter 2016 Highlights

  • Total Revenue increased by 62.3% year-on-year to $204.6 million. Revenue from e-commerce services increased by 154.0% year-on-year to $130.9 million.
  • Operating loss was $110.2 million. Non-GAAP operating loss was $108.1 million. A description of the adjustments from GAAP to non-GAAP operating income is set forth below.
  • Net loss attributable to Fang’s shareholders was $113.7 million.
  • Non-GAAP net loss attributable to Fang’s shareholders was $111.6 million, a $0.23 loss per fully-diluted earnings ADS.
  • GMV increased by 664% from $1.7 billion in the first quarter of 2015 to $12.7 billion in the first quarter. The following table shows GMV by quarter for the 3 months of 2016.

First Quarter 2016 Results

Revenues

Fang reported total revenues of $204.6 million for the three months ended March 31, 2016, representing an increase of 62.3% from $126.0 million for the corresponding period in 2015, primarily driven by the growth in e-commerce services.

Revenue from marketing services was $30.4 million for the three months ended March 31, 2016, a decrease of 25.1% from $40.6 million for the corresponding period in 2015, primarily due to the offset by our e-commerce services.

Revenue from listing services was $24.1 million for the three months ended March 31, 2016, which is higher than the $23.6 million for the corresponding period in 2015.

Revenue from Internet financial services was $10.6 million for the three months ended March 31, 2016, an increase of 200.1% from $3.5 million for the corresponding period in 2015 primary due to rapid growth in our financial services to the real estate brokerage services.

Revenue from value-added services and other services was $8.5 million for the three months ended March 31, 2016, an increase of 27.8% from $6.7 million for the corresponding period in 2015, primarily due to the growth of our data and research related products.

Cost of Revenue

Cost of revenue was $209.6 million for the three months ended March 31, 2016, an increase of 357.6% from $45.8 million for the corresponding period in 2015. The increase in cost of revenue was mainly attributable to increased staff cost.

SouFun Holdings Ltd. earnings per share showed a decreasing trend of -108.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 14%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual decline over the past 5 fiscal years of -17.3% when sales grew 31.5. It reported 65.7% sales growth, and 0% EPS decline in the last quarter.

The stock is trading at $5.19, up 18.76% from 52-week low of $4.37. The stock trades down -43.59% from its peak of $8.87 and % below the consensus price target of $7.3. Its volume clocked up at 4.45 million shares which is higher than the average volume of 4.16 million shares. Its market capitalization currently stands at $2.43B.

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