Giant Interactive Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Giant Interactive Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Gross margins grew, operating margins improved, net margins dropped.
Giant Interactive Group tallied revenue of $80.6 million. The nine analysts polled by S&P Capital IQ looked for sales of $79.8 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $61.6 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 $0.19. The nine earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 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 86.7%, 230 basis points better than the prior-year quarter. Operating margin was 62.3%, 50 basis points better than the prior-year quarter. Net margin was 57.4%, 760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $82.9 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 547 members out of 570 rating the stock outperform, and 23 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Giant Interactive Group a green thumbs-up, and five 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 $6.43.
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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.