Shanda Games Limited (NASDAQ:GAME) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Shanda Games Limited Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 15.79% to $0.16 in the quarter versus EPS of $0.19 in the year-earlier quarter.
Revenue: Decreased 21.61% to $173 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Shanda Games Limited reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.15. It missed the average revenue estimate of $173.72 million.
Quoting Management: “During the first quarter of 2013, we made significant progress in our mobile game business as we witnessed strong reception to our mobile games in the Korean market. With revenue contribution close to 10 percent of our total revenues, our mobile game business now forms an integral part of our strategic focus. Following the successful launch of mobile game ‘Million Arthur’ in Korea, the game’s launch in Taiwan in late March was also met with enthusiastic response in both the Android and iOS platforms. We plan to bring this game to Mainland China and Singapore this summer,” said Mr. Xiangdong Zhang, Chief Executive Officer of Shanda Games. “In addition, we will continue to work on developing a number of other titles, including a mobile version of ‘Dragon Nest,’ which will be launched during the second half of this year.”
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