Changyou.com Limited Second Quarter Earnings Sneak Peek

Changyou.com Limited (NASDAQ:CYOU) will unveil its latest earnings on Monday, August 1, 2011. The company is an online game developer and operator in China.

Changyou.com Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 92 cents per share, a rise of 16.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of $3.99 per share, a rise of 21.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 99 cents per share against a mean estimate of net income of 92 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $98.8 million in revenue this quarter, a rise of 27.1% from the year ago quarter. Analysts are forecasting total revenue of $418.5 million for the year, a rise of 27.9% from last year’s revenue of $327.1 million.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, one rating it as a sell and one rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 26.5%, with the biggest boost coming in the most recent quarter when revenue rose 34.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 33.1% while it rose 23.1% in the fourth quarter of the last fiscal year and 19.8% in the third quarter of the last fiscal year.

Competitors to Watch: The9 Limited (NASDAQ:NCTY), Shanda Games Limited (NASDAQ:GAME), Giant Interactive Group Inc (NYSE:GA), Perfect World Co., Ltd. (NASDAQ:PWRD), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), NetEase.com, Inc. (NASDAQ:NTES), Gravity Co., LTD. (NASDAQ:GRVY), and Sohu.com Inc. (NASDAQ:SOHU).

Stock Price Performance: During May 27, 2011 to July 26, 2011, the stock price had risen $9.05 (22.4%) from $40.37 to $49.42. The stock price saw one of its best stretches over the last year between June 20, 2011 and July 1, 2011 when shares rose for 10-straight days, rising 26.5% (+$9.66) over that span. It saw one of its worst periods between May 9, 2011 and May 16, 2011 when shares fell for six-straight days, falling 10.1% (-$4.51) over that span. Shares are up $20.91 (+73.3%) year to date.

(Source: Xignite Financials)

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