Changyou.com (Nasdaq: CYOU ) reported earnings on Nov. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Changyou.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins expanded, net margins dropped.
Changyou.com reported revenue of $165.8 million. The 10 analysts polled by S&P Capital IQ anticipated revenue of $155.5 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $119.0 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 $1.42. The three earnings estimates compiled by S&P Capital IQ predicted $1.32 per share. GAAP EPS of $1365.58 for Q3 were much higher than the prior-year quarter's $1.00 per share.
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%, 350 basis points worse than the prior-year quarter. Operating margin was 55.7%, 370 basis points better than the prior-year quarter. Net margin was 44.0%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $160.9 million. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $597.6 million. The average EPS estimate is $5.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 211 rating the stock outperform, and 29 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Changyou.com a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Changyou.com is outperform, with an average price target of $33.56.
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