NEW YORK (AP) — Youku shares rose 3 percent Friday after the Chinese online video provider issued a better-than-expected revenue prediction for the quarter.
THE SPARK: Youku Tudou said it expects its fourth-quarter revenue of between 610 million and 630 million Yuan, ($97.9 million to $101.1 million), well ahead of Wall Street's expectations of $87.3 million.
The company's third-quarter results were also roughly in line with predictions. For the quarter ended Sept. 30, Youku Tudou posted a loss of $14.6 million, or 11 cents per American depository share. Revenue totaled $79.9 million. Analysts, on average, expected a loss of 10 cents per share on $77.2 million in revenue, according to a FactSet poll.
THE BIG PICTURE: In August, Youku Inc. acquired rival Tudou Holdings Ltd. and changed its name to Youku Tudou Inc. As a result of the deal, the company did not provide comparable year-ago results.
The company said expects to post additional cost savings into fiscal 2013.
THE SHARES: Youku rose 57 cents, or 3 percent, to $17.45 in afternoon trading, after peaking at $18.77 earlier in the day. Over the past 52 weeks, the company's shares have traded between $15.39 and $32.75.