Why SINA Corp. Stock Popped Tuesday

By MarketsFool.com

Image source: SINA Corporation.

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What happened

Shares of SINA Corp. (NASDAQ: SINA) closed up 10% Tuesday after the Chinese online media company announced stronger-than-expected third-quarter 2016 results.

So what

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Adjusted quarterly revenue climbed 21.7% year over year to $272.3 million, driven by 21% growth in online advertising revenue to $233.6 million. More specifically, online ad revenue growth was driven by a $47.8 million increase in Weibo advertising and marketing revenue, and partially offset by a $7.7 million decline in portal ad revenue.

On the bottom line, that translated to 79.1% growth in adjusted net income, to $43.7 million, and 43.6% growth in adjusted net income per share, to $0.56.

By comparison -- and though we don't usually pay close attention to Wall Street's near-term expectations -- analysts' consensus estimates predicted lower adjusted revenue and earnings of $265.3 million, and $0.35 per share, respectively.

SINA CEO Charles Chao stated the company is "delighted" with its performance, elaborating:

Now what

As it stands, this was a fairly cut-and-dried quarterly beat from SINA as it progresses on the monetization of its web properties in today's increasingly mobile market. If SINA can sustain this upward business momentum going forward, I suspect the value of its shares will continue to follow suit.

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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Sina. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.