Perfect World (Nasdaq: PWRD ) is expected to report Q4 earnings around Feb. 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Perfect World's revenues will contract -11.1% and EPS will compress -46.7%.
The average estimate for revenue is $109.1 million. On the bottom line, the average EPS estimate is $0.48.
Last quarter, Perfect World tallied revenue of $110.7 million. 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.
Last quarter, non-GAAP EPS came in at $0.34. GAAP EPS of $0.28 for Q3 were 38% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding 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.
The full year's average estimate for revenue is $448.3 million. The average EPS estimate is $2.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 478 members out of 512 rating the stock outperform, and 34 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Perfect World a green thumbs-up, and eight 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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