Perfect World (Nasdaq: PWRD) reported earnings on May 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Perfect World beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Perfect World reported revenue of $100.6 million. The seven analysts polled by S&P Capital IQ looked for net sales of $98.8 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $114.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.49. The five earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. Non-GAAP EPS of $0.49 for Q1 were 36% lower than the prior-year quarter's $0.77 per share. GAAP EPS of $0.43 for Q1 were 39% lower than the prior-year quarter's $0.70 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 76.5%, 580 basis points worse than the prior-year quarter. Operating margin was 21.3%, much worse than the prior-year quarter. Net margin was 21.0%, 820 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $105.5 million. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $452.6 million. The average EPS estimate is $1.95.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 472 members out of 506 rating the stock outperform, and 34 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 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 $13.45.

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