Shares of Fang Holdings Ltd (NYSE: SFUN) dropped about 10% early Monday after the company unexpectedly reported a net loss for the first quarter, owing to a decline in revenues, which also missed Wall Street’s estimates.
On an adjusted basis, the China-based real estate internet portal posted a loss of $0.03 per ADS, representing a deterioration from the year-ago period when it posted nil earnings. Analysts were expecting a net profit.
On a reported basis, it was net income of $13.4 million or $0.03 per ADS, compared to a loss of $44.88 million or $0.10 per ADS last year. The unadjusted results benefitted from gains from the change in fair value of equity securities, which was partially offset by interest expenses and income tax expenses.
The unadjusted results benefitted from gains from the change in fair value of equity securities
In the latest quarter, revenues dropped 20% to $51.89 million, hurt mainly by softness in the demand for listing and e-commerce services. While marketing services revenues remained broadly unchanged year-over-year at $17.2 million, listing services revenues slipped 20% to $21.4 million. Revenues from financial services and e-commerce activities also declined in double digits, while value-added services registered a 3% increase.
“China Index Holdings (NASDAQ: CIH) was successfully spun off from Fang and listed on NASDAQ. Fang will now focus more on its core internet advertising, listing, and leads business lines which are expected to grow for the year of 2019,” said CEO Jian Liu.
Also see: Fang Holdings Limited Q1 2019 Earnings Conference call
Looking ahead, the management expects to record profit in the full-year 2019, on an adjusted basis, benefitting from the improvement in operating and market conditions.
Earlier this month, Fang completed the spin-off of China Index Holdings Limited, its wholly owned subsidiary.
Fang’s stock lost nearly 10% during Monday’s premarket session, following the quarterly report and slipped to a multi-year low. The shares lost 41% so far this year and 80% since last year.
Most Popular
Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat
Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the
Nutanix (NTNX) Earnings: 2Q21 Key Numbers
Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3
Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023
Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer
