Iqiyi (NASDAQ:IQ) earnings for the Chinese video streaming company’s second quarter of 2020 have IQ stock taking a beating after markets closed on Thursday. That comes after reporting diluted losses per share of 1.96 yuan and revenue of 7.41 billion yuan. For comparison, Wall Street was expecting diluted losses per share of 3.40 yuan on revenue of 7.29 billion yuan.
Here’s what else is worth mentioning from the iQiyi earnings report.
- Diluted per-share losses are a 39.1% improvement compared to 3.22 yuan in the second quarter of 2019.
- Revenue for the quarter is sitting 4% higher than the 7.11 billion yuan from the same time last year.
- Operating loss of 1.28 billion yuan is 31.6% narrower year-over-year from 1.87 billion yuan.
- The iQiyi earnings report also have net loss coming in at 1.44 billion yuan.
- That’s 38.2% better than the company’s net loss of 2.33 billion yuan reported during the same period of the year prior.
Dr. Yu Gong, founder, director and CEO of iQiyi, said the following in the earnings report.
“The Covid-19 pandemic greatly impacted our business during the first half of the year, resulting in unusual user behavior, fluctuating numbers, and unprecedented challenges. Nevertheless, we further secured our dominant market position bolstered by our substantial IP assets, outstanding content, and robust technology platform.”
Iqiyi includes guidance for its third quarter of 2020 in the current earnings report. It expects revenue for the period to range from 6.95 billion yuan to 7.40 billion yuan. That doesn’t look good for IQ stock with Wall Street estimating revenue of 7.43 billion yuan in Q3 2020.
IQ stock was down 12.8% after-hours Thursday and ended normal trading hours down 2.4%.
As of this writing, William White did not hold a position in any of the aforementioned securities.