Perfect World Beats on the Top Line
Perfect World (NAS: PWRD) reported earnings on March 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Perfect World beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
Perfect World booked revenue of $122.7 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $112.5 million on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $89.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.90. The eight earnings estimates compiled by S&P Capital IQ predicted $0.55 per share on the same basis. GAAP EPS of $0.86 for Q4 were 139% higher than the prior-year quarter's $0.36 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 82.3%, 20 basis points better than the prior-year quarter. Operating margin was 28.4%, 690 basis points better than the prior-year quarter. Net margin was 33.5%, 1,240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $116.5 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $500.2 million. The average EPS estimate is $2.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 464 members out of 494 rating the stock outperform, and 30 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Perfect World a green thumbs-up, and seven 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 $19.87.
New technology paradigms and mobile devices are driving the next wave of computing. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does Perfect World fit in? What's the fortune-making change? Check out our free report: "The Two Words Bill Gates Doesn't Want You to Hear..." Click here for instant access to this free report.
- Add Perfect World to My Watchlist.
At the time this article was published 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. 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.