Focus Media Beats Estimates; Updates Guidance (FMCN)

Focus Media Holding Ltd. FMCN reports Q2 EPS of $0.30 versus estimates of $0.23. Focus Media Holding Ltd. reports revenues of $158.2 million versus estimates of $142.65 million. Revenues increased 27% sequentially and 22% year over year. FMCN issued the following outlook: “The net revenues for the core business (inclusive of movie theater network of $5 million for the third quarter of 2010 as compared to the net revenues of $3.5 million for the second quarter of 2010) are expected to be in the range of $120-$123 million, the mid-point of which would represent quarter-on-quarter growth of 8% and year-on-year growth of 37%, or quarter-on-quarter growth of 7% and year-on-year growth of 36% excluding movie theater network's assumed contribution. Net revenues for the non-core business (contribution through to the date of disposal of Internet advertising services of approximately $10 million) are expected to be in the range of $20-$22 million. The company's non-GAAP net income is expected to be in the range of $48-$49 million.” Jason Jiang, the Chairman and the Chief Executive Officer of the Company said, "The first half of 2010 has seen a broad based recovery of the advertising market from the first half of 2009. According to Nielsen Research, the Chinese advertising market grew 15% year on year during the first half of 2010. The Company managed to grow the core business 24% year over year during the same period, indicating that we continue to gain market share in the Chinese advertising market. We are confident that as we further stabilize and strengthen our core business, we can strive to continue our market share gain in the second half of 2010." Shares of FMCN are lower in the after-hours by 0.22%.