U.S. stocks are slightly up on Tuesday trading, with indexes hitting record highs again, as the earnings season reaches its end.
In this article, we will look into the results that have just been posted by SINA Corp (NASDAQ: SINA), Weibo Corp (ADR) (NASDAQ:WB), WebMD Health Corp. (NASDAQ:WBMD), Microchip Technology Inc. (NASDAQ:MCHP), and Endo International plc – Ordinary Shares (NASDAQ:ENDP). In addition, we are going to discuss what the funds in our database think about these five companies.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).
SINA and Weibo Spike On Strong Results
Shares of SINA Corp (NASDAQ:SINA) have gained more than 12% on Tuesday trading, driven by the announcement of the company’s second quarter results. EPS of $0.27 beat the Street’s consensus by $0.12, while revenue of $241.35 million came in $9.66 million ahead of expectations. Also pushing the stock upwards was the full-year revenue guidance, which was raised from $850-$950 million to $950 million-$1 billion, mostly above consensus of $951.5 million.
Fundamental to SINA’s robust performance was the strength in the Twitter-like portal Weibo Corp (ADR) (NASDAQ:WB), which is majority-owned by the former company. Weibo also is trading in green today on a top and bottom line beat. Second quarter EPS of $0.16 beat expectations by $0.05, while revenue of $146.9 million, up 36.2% year-over-year, were $5.75 million higher than expected. For the ongoing quarter, management guided for revenue in the $168 million to $173 million range, versus estimates of $165 million. Not as surprising was user growth, which, once again, remained in the 30% to 38% range, coming in at 33% for the second quarter.
At the end of the first quarter, 15 funds among those we track were long SINA Corp (NASDAQ:SINA), and 11 held shares of Weibo Corp (ADR) (NASDAQ:WB).