The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Perfect World met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Perfect World reported revenue of $109.1 million. The seven analysts polled by S&P Capital IQ looked for revenue of $109.1 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $122.8 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 $0.47. The four earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.47 for Q4 were 48% lower than the prior-year quarter's $0.90 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.29 for Q4 were 66% lower than the prior-year quarter's $0.85 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.9%, 540 basis points worse than the prior-year quarter. Operating margin was 7.8%, much worse than the prior-year quarter. Net margin was 12.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $112.2 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $493.0 million. The average EPS estimate is $2.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 478 members out of 514 rating the stock outperform, and 36 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Perfect World a green thumbs-up, and nine 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 $14.20.
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