Perfect World (Nasdaq: PWRD ) reported earnings on Nov. 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Perfect World beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Perfect World logged revenue of $110.7 million. The eight analysts polled by S&P Capital IQ predicted sales of $104.2 million on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $111.1 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 $0.34. The three earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.06 for Q3 were 33% lower than the prior-year quarter's $0.09 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 81.5%, 140 basis points worse than the prior-year quarter. Operating margin was 15.7%, 1,160 basis points worse than the prior-year quarter. Net margin was 12.4%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $110.9 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $444.9 million. The average EPS estimate is $2.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 486 members out of 520 rating the stock outperform, and 34 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Perfect World a green thumbs-up, and 10 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 $15.17.
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