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.
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.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,