The 10-second takeaway
For the quarter ended June 30 (Q2), Shanda Games missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share stayed the same.
Margins expanded across the board.
Shanda Games reported revenue of $178.7 million. The 10 analysts polled by S&P Capital IQ hoped for revenue of $183.0 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $204.2 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 six earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.17 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.4%, 180 basis points better than the prior-year quarter. Operating margin was 31.4%, 400 basis points better than the prior-year quarter. Net margin was 27.3%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $201.4 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $824.4 million. The average EPS estimate is $0.83.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 315 members out of 326 rating the stock outperform, and 11 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Shanda Games a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shanda Games is outperform, with an average price target of $5.17.
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