Changyou.com Limited Earnings: Fifth Straight Quarters of Double-Digit Growth

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

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Changyou.com Earnings Cheat Sheet for the First Quarter

Results: Net income for Changyou.com Limited rose to $65.3 million ($1.22 per share) vs. $58.4 million ($1.10 per share) in the same quarter a year earlier. This marks a rise of 11.7% from the year-earlier quarter.

Revenue: Rose 30.4% to $136.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Changyou.com Limited reported adjusted net income of $1.24 per share. By that measure, the company beat the mean estimate of $1.10 per share. It beat the average revenue estimate of $132.1 million.

Quoting Management: Mr. Tao Wang, Changyou’s chief executive officer, commented, “We’ve started the year with progress in both MMO games and Web-based games, reflecting the solid execution of our “users first” strategy. During the quarter, we integrated the 17173 Business, which includes the assets and business operations associated with the popular game information portal based in China that is operated through the 17173.com Website. The 17173 Business will be the platform around which we will introduce new services and products targeted for gamers over the coming year. We believe that the 17173 Business has the potential to become China’s key online games platform and is an integral part of our commitment to meeting the ever-evolving needs of the world’s largest online game-playing community.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 23 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 10 cents in the second quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is $1.11 per share, down from $1.19 ninety days ago. For the fiscal year, the average estimate has moved down from $4.91 a share to $4.62 over the last ninety days.

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

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