Shanda Games (Nasdaq: GAME ) reported earnings on May 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Shanda Games met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins shrank, net margins shrank.
Shanda Games tallied revenue of $173.0 million. The seven analysts polled by S&P Capital IQ expected sales of $173.2 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $220.5 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 $0.16. The six earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. Non-GAAP EPS of $0.16 for Q1 were 27% lower than the prior-year quarter's $0.22 per share. GAAP EPS of $0.14 for Q1 were 26% lower than the prior-year quarter's $0.19 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 64.3%, 140 basis points better than the prior-year quarter. Operating margin was 27.4%, 400 basis points worse than the prior-year quarter. Net margin was 22.6%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $176.8 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $730.7 million. The average EPS estimate is $0.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 301 members out of 311 rating the stock outperform, and 10 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $4.14.
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