The 10-second takeaway
For the quarter ended March 31 (Q1), Perfect World missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share dropped.
Margins dropped across the board.
Perfect World logged revenue of $113.4 million. The eight analysts polled by S&P Capital IQ expected revenue of $117.4 million on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $110.1 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 $0.77. The three earnings estimates compiled by S&P Capital IQ anticipated $0.79 per share. GAAP EPS of $0.70 for Q1 were 7.9% lower than the prior-year quarter's $0.76 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 82.3%, 270 basis points worse than the prior-year quarter. Operating margin was 32.7%, 710 basis points worse than the prior-year quarter. Net margin was 29.2%, 740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $121.4 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $505.6 million. The average EPS estimate is $3.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 493 members out of 534 rating the stock outperform, and 41 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Perfect World a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Perfect World is outperform, with an average price target of $19.29.
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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.