Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Perfect World Earnings: An Early Look

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Perfect World (UNKNOWN: PWRD.DL  ) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

The Chinese online-gaming industry has suffered its ups and downs lately, but Perfect World has been particularly hurt by strong competition and other headwinds. Let's take an early look at what's been happening with Perfect World over the past quarter, and what we're likely to see in its quarterly report on Monday.

Stats on Perfect World



Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$106 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Perfect World give investors a winning score this quarter?
Analysts have had mixed views on Perfect World over the past few months, having boosted their views slightly on earnings for the just-ended quarter, but pulling back on the full-year 2013 consensus. The stock, though, has performed reasonably well, rising 7% since early December.

Perfect World is one of many companies in China offering massively multi-player online role-playing games to gamers around the world. Although the Chinese online gaming industry is still growing at a strong rate, Perfect World hasn't participated nearly as much as its peers. Larger players NetEase (NASDAQ: NTES  ) and ChangYou (NASDAQ: CYOU  ) have managed to grow their revenue at a fairly substantial rate, but Perfect World has seen revenue drop in the past year, and expects an even bigger contraction this quarter.

In an attempt to boost traffic and promote a coming release, Perfect World gave users early access to its Neverwinter Dungeons & Dragons MMORPG. With one weekend in February and two weekends in March, select gamers in Europe and North America will be able to look at the game for 60 hours, with buyers of the game getting guaranteed slots. The company also has a number of games under development that should launch later this year.

In its quarterly report, watch closely to see how Perfect World fares outside its core Chinese market, where the company has seen solid growth recently. If the company can keep attracting international gamers, then they may prove to be the key to reawakening Perfect World's overall revenue growth.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Click here to add Perfect World to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2302915, ~/Articles/ArticleHandler.aspx, 9/28/2016 8:27:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
PWRD.DL $0.00 Down +0.00 +0.00%
Perfect World CAPS Rating: ***
CYOU $27.18 Down -0.11 -0.40% CAPS Rating: **
NTES $243.49 Down -0.66 -0.27%
NetEase CAPS Rating: ****