The 10-second takeaway
For the quarter ended March 31 (Q1), Shanda Games met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins shrank, net margins shrank.
Shanda Games tallied revenue of $173.0 million. The seven analysts polled by S&P Capital IQ expected sales of $173.2 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $220.5 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 $0.16. The six earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. Non-GAAP EPS of $0.16 for Q1 were 27% lower than the prior-year quarter's $0.22 per share. GAAP EPS of $0.14 for Q1 were 26% 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 64.3%, 140 basis points better than the prior-year quarter. Operating margin was 27.4%, 400 basis points worse than the prior-year quarter. Net margin was 22.6%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $176.8 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $730.7 million. The average EPS estimate is $0.68.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 301 members out of 311 rating the stock outperform, and 10 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Shanda Games 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 Shanda Games is outperform, with an average price target of $4.14.
Looking for alternatives to Shanda Games? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Shanda Games to My Watchlist.