- Sohu excluded financials from its minority owned Sogou subsidiary due to the finalization of its pending acquisition by Tencent.
- The exclusion of Sogou's contributing revenues from Sohu's consolidated results made it appear Sohu missed revenue estimates by a very wide margin.
- Sohu surpassed its previous top-end revenue guidance and gave extremely bullish forward guidance for the current fourth quarter.
- In addition to improving earnings, Sohu is trading at a significant discount to its intrinsic value.
For further details see:
Earnings Confusion Offers An Attractive Entry Into Sohu