Giant Interactive Group
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Giant Interactive Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Gross margins were steady, operating margins contracted, net margins dropped.
Giant Interactive Group recorded revenue of $87.2 million. The nine analysts polled by S&P Capital IQ looked for a top line of $84.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $71.7 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 $0.22. The seven earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.20 for Q3 were 17% lower than the prior-year quarter's $0.24 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 86.2%, about the same as the prior-year quarter. Operating margin was 60.1%, 120 basis points worse than the prior-year quarter. Net margin was 57.4%, 2,150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.9 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $338.2 million. The average EPS estimate is $0.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 557 members out of 580 rating the stock outperform, and 23 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 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 $6.37.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.