Changyou.com Limited Earnings: Everything You Must Know Now

Changyou.com Limited (NASDAQ:CYOU) 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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Changyou.com Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 18.85% to $1.45 in the quarter versus EPS of $1.22 in the year-earlier quarter.

Revenue: Rose 29.85% to $177.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Changyou.com Limited reported adjusted EPS income of $1.45 per share. By that measure, the company beat the mean analyst estimate of $1.42. It beat the average revenue estimate of $172.73 million.

Quoting Management: Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc. commented, “I am pleased to report our Group’s three key properties, namely online media, including portal and online video, Sogou and Changyou are all making strong starts into 2013. For the first quarter, the Group revenues were up 36% year-on-year, exceeding our expectations. By business unit, online video, delivered double digit sequential revenue growth in a typical slowest quarter of the year. Sogou business was solid as its core products continued to gain user traction. Changyou set new records for both top-line and bottom-line, driven by decent performance of its MMO and web games.”

Key Stats (on next page)…

EPS increased 2.84% from $1.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.37 to a profit $1.43. For the current year, the average estimate has moved up from a profit of $5.76 to a profit of $5.92 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)