The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Changyou.com's revenues will increase 22.6% and EPS will grow 16.7%.
The average estimate for revenue is $168.7 million. On the bottom line, the average EPS estimate is $1.33.
Last quarter, Changyou.com chalked up revenue of $165.8 million. GAAP reported sales were 29% higher than the prior-year quarter's $128.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $1.42. GAAP EPS of $1.38 for Q3 were 19% higher than the prior-year quarter's $1.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 83.7%, 150 basis points worse than the prior-year quarter. Operating margin was 58.2%, 240 basis points better than the prior-year quarter. Net margin was 44.0%, 410 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $618.7 million. The average EPS estimate is $5.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 185 members out of 214 rating the stock outperform, and 29 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Changyou.com a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Changyou.com is outperform, with an average price target of $33.56.
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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. TMFDisclosureHere