| Stock (Symbol) | Stock Price | |
Qihoo 360 (QIHU) |
$92 |
|
| Data is as of | Expected to Report | Sector |
June 2, 2014 |
Aug 22 – Aug 26 |
Technology |
| Sharek’s Take | ||
 Qihoo’s putting the pedal to the metal as sales and profit growth continues to accelerate. Sales jumped 141% last qtr, up from 115% 2QtrsAgo. Profits also gained speed, rising 286%, up from 218% the prior qtr. The last five qtrs revenue looks like this: $110m, 152m, $188m, $222m and $265m last qtr (AND QIHU said $300m next qtr). What’s even better is QIHU’s search engine has a 25% market share in China yet the company only handles about 15% of the country’s search ads. When QIHU starts to get more ads profits will likely go sky-high. Yet, QIHU is cheap, selling for only 23 times next year’s estimates. I’m moving QIHU up to the top spot in my Power Rankings this quarter. |
||
| One-Year Chart | ||
 Wow, look at that profit growth along the bottom. And a P/E of only 37. The company crushed estimates the past two qtrs, consider that when looking at Estimates here. This quarter the P/E dropped from 43 to 37 and the Est. LTG fell from 52% to 40% (it shouldn’t have). |
||
| Earnings Table | ||
 Last qtr, revenue increased 141% to $265 million vs. the $229 million estimate. The company also upped next qtr’s revenue est from $270 million to $300-$305 million.For the 2nd straight qtr QIHU annihilated analyst earnings estimates, beating the 34 cent estimate by a whopping 20 cents. Annual Profit Estimates for 2014 fell as expenses increased dramatically, mainly due to TV ads and mobile app pre-installation. Estimates rose for 2015 & 2016. Quarterly estimates lowered profit estimates due to higher spending but I bet QIHU continues to beat the street. |
||
| Fair Value | ||
 QIHU’s revenue is expected to double this year. If the company continues to beat then profits could too. Even if profits don’t double it’s because the company is investing now for even bigger profits in the future. I think this stock is worth 60 times earnings. When search revenue accelerates profits could soar. |
||
| Ten-Year Chart | ||
 This stock needed a breather after the run from $35 to $125 in a year. Notice how good profit growth has been — from fifty-cents to two-fifty. In three years! Don’t underestimate the power of QIHU. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
1 of 24 |
Qihoo could have a tsunami of profits when search revenue catches up to its share of the Chinese search market. In the meantime revenue growth is splendid and the company is smashing views. The only blemish here is triple-digit profit growth might be gone because QIHU made a lot of money Q2-Q4 last year. |
|
Aggressive Growth Portfolio
1 of 12 |
||
