What to Expect from Giant Interactive Group

Before you go, we thought you'd like these...
Before you go close icon

Giant Interactive Group (NYS: GA) is expected to report Q4 earnings on Feb. 26. 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 Giant Interactive Group's revenues will grow 16.0% and EPS will increase 23.5%.

The average estimate for revenue is $91.0 million. On the bottom line, the average EPS estimate is $0.21.


Revenue details
Last quarter, Giant Interactive Group chalked up revenue of $87.2 million. GAAP reported sales were 20% higher than the prior-year quarter's $71.7 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 $0.22. GAAP EPS of $0.20 for Q3 were 17% lower than the prior-year quarter's $0.24 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 86.2%, about the same as the prior-year quarter. Operating margin was 60.1%, 120 basis points worse than the prior-year quarter. Net margin was 57.4%, 2,150 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $343.7 million. The average EPS estimate is $0.85.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 590 members out of 612 rating the stock outperform, and 22 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Giant Interactive Group a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Giant Interactive Group is outperform, with an average price target of $6.37.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Giant Interactive Group makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

The article What to Expect from Giant Interactive Group 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. The Motley Fool recommends Giant Interactive Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners