Changyou.com Limited Earnings: Beats Estimates

Changyou.com Limited (NASDAQ:CYOU) reported net income above Wall Street’s expectations for the fourth quarter. Changyou.com is an online game developer and operator in China.

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Changyou.com Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Changyou.com Limited rose to $64.3 million ($1.21 per share) vs. $53.4 million ($1 per share) in the same quarter a year earlier. This marks a rise of 20.4% from the year earlier quarter.

Revenue: Remained constant at $137.7 million.

Actual vs. Wall St. Expectations: Changyou.com Limited reported adjusted net income of $1.33 per share. By that measure, the company beat the mean estimate of $1.08 per share. It beat the average revenue estimate of $124.1 million.

Quoting Management: Mr. Tao Wang, Changyou’s chief executive officer, commented, “Tian Long Ba Bu, or TLBB, continues to be a winner for us, based on its loyal fan base and our ability to deliver high-quality innovations that keep the game attractive. For TLBB, our latest major expansion pack, TLBB3, was a big factor in our record-breaking results for the fourth quarter and for the full year. DDTank, the flagship game of our new subsidiary 7Road, continues to be one of the top-ranked Web-based games on game portals and social networking sites in China. During the year, we completed a strategic review and implemented a number of changes reflecting the diversity of our business going forward, with separate teams and roadmaps for MMO games, Web-based games, mobile and social games, user platforms, and the international market. We expect these expanded strategies to carry us into the next phase as we evolve reflecting new story lines, new technology and changing user preferences for online games in China and the world.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by 10 cents in the second quarter, and by 7 cents in the first quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is $1.16 per share, up from $1.13 ninety days ago. The average estimate for the fiscal year is now $4.08 per share, down from $4.09 sixty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com