The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Shanda Games met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Shanda Games reported revenue of $170.4 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $170.3 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $211.9 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 six earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.15 for Q3 were 21% lower than the prior-year quarter's $0.19 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 63.4%, 210 basis points better than the prior-year quarter. Operating margin was 26.0%, 70 basis points worse than the prior-year quarter. Net margin was 23.5%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $177.6 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $747.7 million. The average EPS estimate is $0.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 312 members out of 322 rating the stock outperform, and 10 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 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 $4.73.
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