Perfect World (Nasdaq: PWRD ) reported earnings on Aug. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Perfect World met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Perfect World chalked up revenue of $106.4 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $105.9 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $120.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.57. The three earnings estimates compiled by S&P Capital IQ forecast $0.64 per share. GAAP EPS of $0.51 for Q2 were 45% lower than the prior-year quarter's $0.93 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.3%, 410 basis points worse than the prior-year quarter. Operating margin was 22.9%, 1,820 basis points worse than the prior-year quarter. Net margin was 23.4%, 1,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $104.5 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $441.8 million. The average EPS estimate is $2.27.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 495 members out of 540 rating the stock outperform, and 45 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Perfect World a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Perfect World is outperform, with an average price target of $16.19.
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