Shanda Games (NAS: GAME) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Shanda Games met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Gross margins expanded, operating margins grew, and net margins shrank.
Shanda Games booked revenue of $220.7 million. The 12 analysts polled by S&P Capital IQ expected to see sales of $221.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $191.3 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 $0.22. The eight earnings estimates compiled by S&P Capital IQ predicted $0.20 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 62.9%, 210 basis points better than the prior-year quarter. Operating margin was 31.4%, 350 basis points better than the prior-year quarter. Net margin was 24.2%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $226.6 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $932.3 million. The average EPS estimate is $0.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 309 members rating the stock outperform and nine members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Shanda Games 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 Shanda Games is outperform, with an average price target of $5.56.
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At the time thisarticle 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.
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