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What: Shanda Games
So what: Fourth-quarter results were at the high end of guidance. Sequentially, EPS grew 27%, helped by new products (revenue grew 5%) and a 140% increase in government financial incentives.
Now what: Management said growth is accelerating internationally (outside China) and it has built a solid foundation for 2011, but did not offer guidance. Compared to the year-ago quarter, revenue fell 14%, operating income fell 33%, and net income fell 12%. Investors may want to wait for evidence the sequential improvement was more than normal seasonal strength and assess the sustainability of EPS-boosting government financial incentives.
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Fool contributor Cindy Johnson does not own shares of any company named above. 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.