Changyou.com (Nasdaq: CYOU ) reported earnings on July 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Changyou.com met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew. GAAP earnings per share increased significantly.
Margins dropped across the board.
Changyou.com tallied revenue of $182.4 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $182.6 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $147.3 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 $1.41. The seven earnings estimates compiled by S&P Capital IQ forecast $1.38 per share. Non-GAAP EPS of $1.41 for Q2 were 4.4% higher than the prior-year quarter's $1.35 per share. GAAP EPS of $1405.28 for Q2 were much higher than the prior-year quarter's $1.30 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 83.0%, 100 basis points worse than the prior-year quarter. Operating margin was 51.1%, 640 basis points worse than the prior-year quarter. Net margin was 41.2%, 570 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $190.6 million. On the bottom line, the average EPS estimate is $1.45.
Next year's average estimate for revenue is $743.9 million. The average EPS estimate is $5.70.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 187 members out of 216 rating the stock outperform, and 29 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Changyou.com 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 Changyou.com is outperform, with an average price target of $35.92.
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