Giant Interactive Group
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Giant Interactive Group 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 shrank significantly.
Gross margins were steady, operating margins contracted, net margins dropped.
Giant Interactive Group recorded revenue of $87.2 million. The nine analysts polled by S&P Capital IQ looked for a top line of $84.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $71.7 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 $0.22. The seven earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.20 for Q3 were 17% lower than the prior-year quarter's $0.24 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 86.2%, about the same as the prior-year quarter. Operating margin was 60.1%, 120 basis points worse than the prior-year quarter. Net margin was 57.4%, 2,150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.9 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $338.2 million. The average EPS estimate is $0.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 557 members out of 580 rating the stock outperform, and 23 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give Giant Interactive Group a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Giant Interactive Group is outperform, with an average price target of $6.37.
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