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What: Shares of China Mobile Games & Entertainment Grp Ltd (NASDAQ:CMGE) jumped nearly 12% Friday after the company released better-than-expected first-quarter results.
So what: Quarterly revenue increased 488% year-over-year to $34.5 million, which helped China Mobile Games swing from a $2.1 million adjusted net loss this time last year to adjusted net income of $6.2 million, or $0.21 per diluted American depositary share. Analysts, on average, were looking for net income of $0.11 per share on sales of $30.23 million.
Now what: China Mobile Games' average revenue per user also continued to improve, this time to $6.38 in the first quarter. By comparison, China Mobile Games achieved revenue of $3.82 per user in the same year-ago period, and $5.87 per user when it missed top-line estimates last quarter. In any case, today's beat is solid by any measure. If China Mobile Games can continue making strides in achieving profitable growth, I see no reason the stock won't continue to reward investors from here.
Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.