Phoenix New Media News: Why FENG Stock Is Rocketing 49% Higher Today

Phoenix New Media (NYSE:FENG) news for Thursday concerning a special dividend has shares of FENG stock on the rise.

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The company has announced a special dividend of $1.3712 per American depositary share (ADS). This has the total value of the dividend reaching $100 million. The dividend will be payable on Dec. 22, 2020, to investors on record as of Dec. 4, 2020.

JPMorgan Chase Bank, N.A. is acting as the depository of the ADS for FENG stock. This will have it paying a dividend of $1.3512 per ADS on Dec. 22. This lower price accounts for the company deducting its fees and expenses from the dividend.

To go along with this news, Phoenix New Media says that it is paying a special cash compensation to its option holders. This was approved by the company’s Board of Directors and has a total value of $8.98 million.

All of this positive dividend news from Phoenix New Media comes after the release of its earnings report for the third quarter of 2020 on Wednesday. The company reported adjusted earnings per share of 2 cents on revenue of 303 million yuan. For comparison, Wall Street was expecting adjusted EPS of 3 cents on revenue of 425.49 million yuan.

Edward Lu, CFO of Phoenix New Media, said this about the news.

“In the face of macroeconomic uncertainties, the COVID-19 pandemic, and escalating geopolitical tensions, we maintained our laser-sharp focus on the refinement of our cost structures during the third quarter of 2020. In light of the current situation, we expect the new media industry in China to continue facing pressure throughout the remainder of the year.”

FENG stock was up 48.7% as of Thursday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/phoenix-new-media-news-pushes-feng-stock-higher/.

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