What To Expect From Sina’s Q1 Earnings

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SINA
Sina

Sina (NASDAQ:SINA) is scheduled to announce its first quarter earnings on May 9. Sina has reported strong double digit growth in revenues and a massive improvement in margins through 2017. A strong set of results in recent quarters was complemented by the company reducing its debt load, contributing to a healthier balance sheet. It is interesting to note that cash (net of debt) on Sina’s balance sheet makes up around 50% of the company’s total valuation, per Trefis estimates. We expect the strong revenue growth and improvement in margins to continue through the March quarter.

For the March ended quarter, we expect advertising revenues to continue to drive top line growth, particularly due to strength at Weibo. Similarly, non-advertising revenues are also expected to continue to increase in the teens through the March quarter. Despite revenue growth, we expect margins to be slightly lower than the comparable prior year period as the company intends to scale up its marketing expenses for the next few quarters. This could result in lower operating margins in the near term. However, in the long run, we forecast the company’s EBITDA margin to expand. We have created an interactive analysis which summarizes our Q1 expectations for Sina. You can change expected segment revenue and margin figures for Sina to gauge how it will impact expected EPS for the quarter.

Relevant Articles
  1. Why Sina’s Revenues Will Likely See Only A Marginal Growth in 2020
  2. Decline In Sina’s Q3 Advertising Revenue Isn’t A Cause For Concern Yet
  3. Can Sina’s Revenue Growth Numbers Recover This Year?
  4. Sina’s Strength In Fintech Should Make Up For Weakness In Weibo Going Forward
  5. Sina Likely To Report Forgettable Q1 Results, But Revenues Should Recover Sharply In The Near Future
  6. How Much Can Chinese Stimulus Impact Sina’s Valuation?

 

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