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Fang Holdings (SFUN) Reports Q2 Loss, Marketing Services Growth

Zacks Equity Research

Fang Holdings Limited SFUN reported second-quarter 2019 non-GAAP net loss of 2 cents per share. Total revenues came in at $67.6 million.

Revenues in Detail

Marketing services revenues of $32.5 million increased 19.3% from the year-ago quarter on the back of Fang's efforts in customer development.

Listing services revenues of $19.2 million decreased 26% due to lower number of paying members.

Revenues from leads generation services came in at $10.8 million compared with $2.8 million in the prior-year quarter on the back of increased effectiveness of service and customer development.

Revenues from value-added services came in at $1.7 million, up 19.9% from the prior-year quarter.

Financial services revenues of $2.6 million declined 3.2% from the year-ago quarter.

Revenues from e-commerce services decreased 75.7% year over year to $0.8 million. 

Profitability Performance

Gross profit decreased 8% from the year-ago quarter to $59.3 million. Operating income from continuing operations came in at $29.0 million in the reported quarter against operating loss of $9.6 million in the prior-year quarter, owing to a decline in operating expenses.

Operating expenses of $30.3 million decreased 53% year over year due to lower bad debt and staff costs. Selling expenses of $16.1 million increased 12.5% year over year. General and administrative expenses decreased to $15.7 million from $50.7 million in the year-ago quarter due to a decline in bad debt and staff cost.

Fang Holdings Limited Price, Consensus and EPS Surprise


Fang Holdings Limited Price, Consensus and EPS Surprise

Fang Holdings Limited price-consensus-eps-surprise-chart | Fang Holdings Limited Quote

Balance Sheet

Fang Holdings exited second-quarter 2019 with cash and cash equivalents, restricted cash (current and non-current) and short-term investments of $500.6 million compared with $477.1 million at the end of the prior quarter. Long-term loan was $119.5 million compared with $122.47 million at the end of the prior quarter.  

Zacks Rank & Stocks to Consider

Currently, Fang Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Huron Consulting HURN, Accenture ACN and Fiserv FISV, each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Huron Consulting, Accenture and Fiserv is 13.5%, 10.3% and 12%, respectively.

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