Shanda Games Limited
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Shanda Games Limited met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins improved, net margins dropped.
Shanda Games Limited reported revenue of $215.3 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $214.2 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $174.8 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 $0.17. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.17 for Q4 were 15% lower than the prior-year quarter's $0.20 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 61.5%, 70 basis points better than the prior-year quarter. Operating margin was 29.6%, 140 basis points better than the prior-year quarter. Net margin was 22.4%, 940 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $218.7 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $913.9 million. The average EPS estimate is $0.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 323 members out of 332 rating the stock outperform, and nine members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Shanda Games Limited a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shanda Games Limited is outperform, with an average price target of $6.21.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.