Shanda Games Limited Earnings: Here’s Why Investors are Excited Now
Shanda Games Limited (NASDAQ:GAME) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.69%.
Shanda Games Limited Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 41.18% to $0.24 in the quarter versus EPS of $0.17 in the year-earlier quarter.
Revenue: Decreased 1.3% to $175.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Shanda Games Limited reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.20. It beat the average revenue estimate of $174.74 million.
Quoting Management: “During the second quarter of 2013, we continued to build upon and sustain the success made over the past few quarters as we made significant progress in our mobile game business and pushed forward with our long-term strategy to expand our MMO portfolio,” said Mr. Xiangdong Zhang, Chief Executive Officer of Shanda Games. “On the mobile game font, ‘Million Arthur’ continued its success with its recent launch in China last month when it immediately became the second top grossing app across all categories on Apple’s App Store in China. Driven by its strong performance in China, we expect our mobile game revenues to grow approximately 50% quarter-over-quarter and account for over 10% of total net revenues during the third quarter of 2013. With 36 mobile titles currently in our pipeline, we look forward to expanding our revenue streams and will continue to seek out new and exciting opportunities.”
Key Stats (on next page)…