Weibo (NASDAQ:WB) Releases Earnings Results, Beats Expectations By $0.27 EPS

Key Points

• Weibo reported earnings of $0.54 per share, significantly exceeding analysts' expectations of $0.27, with revenues of $444.80 million for the quarter, above the forecast of $438.84 million.
• The company's net margin stood at 20.41% and showed a revenue increase of 1.6% compared to the same quarter last year.
• Institutional investors own 68.77% of Weibo's stock, with notable increases in holdings from firms such as JPMorgan Chase & Co., which boosted its position by 497.1% in Q2.

Weibo (NASDAQ:WB - Get Free Report) posted its quarterly earnings data on Thursday. The information services provider reported $0.54 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.27, Briefing.com reports. Weibo had a net margin of 21.10% and a return on equity of 12.65%. The firm had revenue of $444.80 million for the quarter, compared to the consensus estimate of $438.84 million. During the same period in the prior year, the firm posted $0.48 EPS. The firm's revenue was up 1.6% compared to the same quarter last year.

Weibo Stock Performance

Shares of Weibo stock traded down $0.05 during trading hours on Wednesday, reaching $11.16. The company's stock had a trading volume of 1,149,317 shares, compared to its average volume of 1,307,559. The company's 50 day simple moving average is $9.98 and its 200 day simple moving average is $9.60. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.72 and a current ratio of 3.65. Weibo has a one year low of $7.03 and a one year high of $12.40. The stock has a market cap of $2.71 billion, a P/E ratio of 7.80 and a beta of 0.10.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. CANADA LIFE ASSURANCE Co acquired a new stake in shares of Weibo in the 2nd quarter worth about $155,000. Balyasny Asset Management L.P. increased its holdings in shares of Weibo by 115.9% in the 2nd quarter. Balyasny Asset Management L.P. now owns 158,391 shares of the information services provider's stock worth $1,509,000 after acquiring an additional 85,024 shares during the period. Raymond James Financial Inc. increased its holdings in shares of Weibo by 139.5% in the 2nd quarter. Raymond James Financial Inc. now owns 47,852 shares of the information services provider's stock worth $456,000 after acquiring an additional 27,868 shares during the period. Daiwa Securities Group Inc. acquired a new stake in shares of Weibo in the 2nd quarter worth about $61,000. Finally, Marshall Wace LLP acquired a new stake in shares of Weibo in the 2nd quarter worth about $2,502,000. 68.77% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have commented on WB shares. Wall Street Zen downgraded shares of Weibo from a "buy" rating to a "hold" rating in a research note on Tuesday, May 13th. Citigroup increased their price objective on shares of Weibo from $12.00 to $14.00 and gave the company a "buy" rating in a research note on Friday, August 15th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $10.75.

Weibo Company Profile

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People's Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform.