Weibo (NASDAQ:WB) Issues 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) announced its earnings results on Thursday. The information services provider reported $0.54 EPS for the quarter, topping the consensus estimate of $0.27 by $0.27, Briefing.com reports. The firm had revenue of $444.80 million for the quarter, compared to the consensus estimate of $438.84 million. Weibo had a return on equity of 12.74% and a net margin of 21.10%. The business's quarterly revenue was up 1.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.48 EPS.

Weibo Trading Up 2.6%

Weibo stock traded up $0.31 during trading hours on Monday, reaching $11.86. 908,344 shares of the company's stock were exchanged, compared to its average volume of 1,375,019. The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.53. The firm's 50 day simple moving average is $9.88 and its 200 day simple moving average is $9.56. Weibo has a twelve month low of $7.03 and a twelve month high of $12.40. The firm has a market capitalization of $2.88 billion, a PE ratio of 8.29 and a beta of 0.10.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Wall Street Zen downgraded Weibo from a "buy" rating to a "hold" rating in a report on Tuesday, May 13th. Citigroup lifted their target price on Weibo from $12.00 to $14.00 and gave the stock a "buy" rating in a report on Friday. One analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company. Based on data from MarketBeat.com, Weibo presently has an average rating of "Hold" and a consensus target price of $10.75.

Institutional Trading of Weibo

Large investors have recently bought and sold shares of the business. JPMorgan Chase & Co. grew its holdings in Weibo by 497.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 720,348 shares of the information services provider's stock worth $6,865,000 after acquiring an additional 599,700 shares during the period. Marshall Wace LLP bought a new stake in Weibo in the 2nd quarter valued at about $2,502,000. Balyasny Asset Management L.P. increased its position in 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 valued at $1,509,000 after buying an additional 85,024 shares in the last quarter. Raymond James Financial Inc. increased its position in Weibo by 139.5% in the 2nd quarter. Raymond James Financial Inc. now owns 47,852 shares of the information services provider's stock valued at $456,000 after buying an additional 27,868 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co bought a new stake in Weibo in the 2nd quarter valued at about $155,000. 68.77% of the stock is currently owned by institutional investors and hedge funds.

About Weibo

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.