Chinese Internet Company Sina Corp. (NASDAQ: SINA) posted better-than-expected fourth-quarter earning result on Wednesday, driven by its subsidiary Weibo’s strong performance. Sina’s shares dropped as the company provides a soft guidance for 2016.
Sina reported a net income of $14.6 million, or 21 cents a share, compared with $59.8 million, or 90 cents a share, a year earlier. Excluding other items, net income was 35 cents a share, compared with 24 cents a year earlier. The result was better than estimates; analysts projected 11 cents per shares.
Revenue rose 23 percent to $256.2 million thanks to a $41.6 million ad revenue increase in Weibo. Non-ad revenue rose 9% to $33M thanks to higher Weibo and portal revenue.
The result also beat analysts’ estimates. Analysts from Zacks had a consensus estimate of $243 million.
Weibo (NASDAQ: WB), a Chinese microblogs launched by Sina in 2009, reported its fourth-quarter results separately on the same day. The Chinese Twitter posted a fourfold increase in profit to $19.1 million. Excluding stock-based compensation and other items, adjusted earning was 15 cents a share, compared with 4 cents a share a year earlier.
Weibo’s revenue rose 41.6 percent to $149 million, compared with $105.2 million a year earlier. The strong result was driven by a 47 percent increase in advertising and marketing revenue.
Weibo’s monthly active users rose 6% to 236 million in December. Daily active users rose 6 percent to 106 million in December. About 83% of the 236 million users accessed Weibo on mobile, the company said.
However, both Sina and Weibo posted a soft guidance for 2016. Sina said its revenue would between $850 million to $ 950 million in 2016, below analysts’ estimates of $985.9 million. Weibo posted its first quarter guidance of $111 million to $116 million, below a $118.2 million consensus.
Sina’s shares dropped 1.87 percent to 42.93 at 12:01 p.m. in New York. While Weibo shares rose 4.30 percent to $15.18.