It's Showtime for Changyou.com

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Changyou.com (NAS: CYOU) is expected to report Q4 earnings on Feb. 4. Here's what Wall Street wants to see:

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.


Revenue details
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.

EPS details
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.

Recent performance
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.

Looking ahead

The full year's average estimate for revenue is $618.7 million. The average EPS estimate is $5.30.

Investor sentiment
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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The article It's Showtime for Changyou.com originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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