Upcoming AWS Coverage on 58.com Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 5, 2016 / Active Wall St. announces its post-earnings coverage on Fang Holdings Ltd (NYSE: SFUN). The Company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 28, 2016. The Beijing, China-based Company's revenue improved 1% y-o-y and its non-GAAP net loss narrowed during the reported quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Fang Holdings' competitors within the Internet Information Providers space, 58.com Inc. (NYSE: WUBA), reported on November 09, 2016, its unaudited financial results for the third quarter ended September 30, 2016. AWS will be initiating a research report on 58.com in the coming days.

Today, AWS is promoting its earnings coverage on SFUN; touching on SFUN. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SFUN

http://www.activewallst.com/registration-3/?symbol=WUBA

Earnings Reviewed

Fang reported revenue of $250.13 million in Q3 FY16, which came in marginally above $248.51 million recorded in Q3 FY15. However, revenue numbers for Q3 FY16 lagged market consensus estimates of $293 million. The company stated that the quarterly revenue growth was primarily driven by growth of e-commerce services, partially offset by the decline in marketing services.

The Chinese real estate internet portal reported GAAP net loss attributable to Fang's shareholders of $4.95 million, $0.05 loss per diluted share in Q3 FY16 compared to GAAP net income of $1.41 million, or $0.02 per share, in the year ago corresponding period. In Q3 FY16, the company's GAAP loss per diluted American Depository Shares (ADS) was $0.01 compared to break even GAAP net earnings per diluted ADS in Q3 FY15.

The company's non-GAAP net loss attributed to Fang Holdings' shareholders narrowed down during the reported quarter to $14.18 million, or $0.15 loss per diluted, share from $31.85 million, or $0.38 loss per diluted share, in Q3 FY15. Furthermore, non-GAAP loss per diluted ADS for Q3 FY16 was $0.03 versus non-GAAP loss per diluted ADS of $0.08 in the previous year's comparable period. Analysts had expected the company to report non-GAAP loss per diluted ADS of $0.05 during Q3 FY16.

Operating Metrics

For Q3 FY16, the company's gross profit came in at $93.13 million compared to $60.05 million in the year ago period. The company's selling, general, and administrative expenses increased 7.4% y-o-y to $56.73 million in Q3 FY16 on the back of increased advertising and promotional expenses. Fang reported operating profit of $0.22 million versus operating loss of $31.73 million in the prior year's same quarter. Furthermore, adjusted EBITDA, for the reported quarter, came in at $1.59 million compared to the loss of $24.31 million in previous year's comparable period.

Segment Performance

During Q3 FY16, Fang's e-commerce services segment reported revenues of $167.41 million, up 17.4% from $142.58 million in the previous year's same quarter. The segment's rise in quarterly revenues is attributed to growth in the brokerage services for secondary home, partially offset by the scaling down of rental and home furnishing due to the adjustment of Fang's strategies in 2016.

The company generated $35.57 million as revenues from marketing services in Q3 FY16, a decline of 45.8% y-o-y, as the company was marred with reduced demand from property developers for online advertising.

Due to increased unit price per paying member, Fang's listing services revenues for Q3 FY16 came in at $28.49 million, which was 4.0% more than $27.41 million reported in the year ago quarter.

In Q3 FY16, Internet financial services' contribution to the company's total revenues was $7.27 million, a rise of 14.0% from the $6.38 million recorded in the prior year's comparable quarter.

Lastly, revenues from other value-added services surged 75.4% y-o-y to $11.38 million in Q3 FY16, primarily due to the growth of big data services in research business.

Cash Flow and Balance Sheet

During the three months ended September 30, 2016, Fang's net cash generated by operating activities was $76.8 million compared $86.8 million in Q3 FY15. As on September 30, 2016, the company had cash, cash equivalents, and short-term investments balance of $893.4 million compared to a balance of $983.7 million as on December 31, 2015. The company's long-term loans balance was $82.20 million as on September 30, 2016, and it had not reported any loan in its books of accounts on December 31, 2015.

Share Repurchase

As of November 28, 2016, Fang had repurchased approximately 17 million ADS for total consideration of $81 million and will purchase ADS no more than $200 million, under its current share repurchase program.

Earnings Outlook

For full year FY16, Fang reduced its total revenue guidance to approximately $927.7 million from previously provided guidance range of $1.15 billion, accounting for a 5.0% y-o-y growth.

Stock Performance

Fang Holdings' share price finished Friday's trading session flat at $2.90. A total volume of 5.55 million shares exchanged hands, which was higher than the 3 months average volume of 4.09 million shares. The stock has a market cap of $1.36 billion.

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SOURCE: Active Wall Street