Giant Interactive Group Beats on Both Top and Bottom Lines
Giant Interactive Group (NYS: GA) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Giant Interactive Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.
Gross margins grew, operating margins improved, net margins dropped.
Giant Interactive Group tallied revenue of $80.6 million. The nine analysts polled by S&P Capital IQ looked for sales of $79.8 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $61.6 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 $0.19. The nine earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 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 86.7%, 230 basis points better than the prior-year quarter. Operating margin was 62.3%, 50 basis points better than the prior-year quarter. Net margin was 57.4%, 760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $82.9 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $341.1 million. The average EPS estimate is $0.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 547 members out of 570 rating the stock outperform, and 23 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 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 $6.43.
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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.