Giant Interactive Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Giant Interactive Group beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Gross margins dropped, operating margins grew, and net margins dropped.
Giant Interactive Group logged revenue of $78.4 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $75.6 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $55.8 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 nine earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $0.17 for Q4 were 13% higher than the prior-year quarter's $0.15 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 86.3%, 830 basis points worse than the prior-year quarter. Operating margin was 59.2%, 770 basis points better than the prior-year quarter. Net margin was 49.8%, 1,300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $78.8 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $341.1 million. The average EPS estimate is $0.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 546 members out of 568 rating the stock outperform, and 22 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Giant Interactive Group 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 Giant Interactive Group is outperform, with an average price target of $6.72.
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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.