Shanda Games (Nasdaq: GAME ) reported earnings on Feb. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Shanda Games met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Shanda Games booked revenue of $172.1 million. The eight analysts polled by S&P Capital IQ foresaw sales of $171.9 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $215.1 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 $0.15. The six earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. Non-GAAP EPS of $0.15 for Q4 were 12% lower than the prior-year quarter's $0.17 per share. GAAP EPS of $0.13 for Q4 were 24% lower than the prior-year quarter's $0.17 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 65.4%, 390 basis points better than the prior-year quarter. Operating margin was 28.4%, 350 basis points worse than the prior-year quarter. Net margin was 19.8%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $177.0 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $757.7 million. The average EPS estimate is $0.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 305 members out of 315 rating the stock outperform, and 10 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Shanda Games a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shanda Games is outperform, with an average price target of $4.38.
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