Shawshank, VA 4/30/12 (StreetBeat) -- Chinese Internet portal Sohu.com Inc (Nasdaq: SOHU) reported strong quarterly results, but its second-quarter profit outlook fell well short of estimates as the company forecast slowing brand advertising revenue growth for the third straight quarter.Sohu expects second-quarter brand advertising revenue to rise between 0.4 percent and 5 percent. First-quarter brand advertising revenue rose 7 percent. It had grown 29 percent in the fourth-quarter of 2011 and 30 percent in the third quarter.
"The economic slowdown in China clearly had an impact on advertiser sentiment," Chief Operating Officer Belinda Wang said in a statement.
"Because of lackluster auto sales and the slowing real estate market, many automakers and real estate developers decided to defer their marketing plans."
Brand advertising revenue comes from advertisements on some popular Sohu-run websites like Sohu.com, Focus.cn and Chinaren.com, where the company offers original and syndicated content. It accounts for nearly three-quarters of total online advertising revenue.
The company, which competes with SINA Corp, expects an adjusted profit of 40 cents to 45 cents per share for the second quarter, on revenue of $244 million to $250 million.
Analysts on average expected an adjusted profit of 81 cents per share, on revenue of $250.8 million, according to Thomson Reuters I/B/E/S.
Net income attributable to Sohu.com fell to 23.1 million, or 53 cents per share, from 44.8 million, or $1.01 cents per share, a year ago.
The company's shares, which closed at $55.76 on Friday on the Nasdaq, fell 6 percent to $52.20 in Monday premarket trading.
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