Changyou.com Limited Third Quarter Earnings Sneak Peek

Changyou.com Limited (NASDAQ:CYOU) will unveil its latest earnings on Monday, October 31, 2011. Changyou.com 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 net income of 98 cents per share, a rise of 15.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 99 cents. Between one and three months ago, the average estimate moved up. It has dropped from $1 during the last month. For the year, analysts are projecting profit of $4.11 per share, a rise of 24.9% 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 10 cents, reporting net income of $1.02 per share against a mean estimate of profit of 92 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $117.5 million in revenue this quarter, a rise of 37.2% from the year ago quarter. Analysts are forecasting total revenue of $440 million for the year, a rise of 34.5% from last year’s revenue of $327.1 million.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

A Look Back: In the second quarter, profit rose 28.8% to $54.2 million ($1.02 a share) from $42.1 million (79 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 35.1% to $105 million from $77.7 million.

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 31.1%, with the biggest boost coming in the most recent quarter when revenue rose 35.1% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 33.1% in the first quarter and 23.1% in the fourth 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 August 1, 2011 to October 25, 2011, the stock price had fallen $16.42 (-35.6%) from $46.07 to $29.65. 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 September 12, 2011 and September 22, 2011 when shares fell for nine-straight days, falling 20.9% (-$7.72) over that span. Shares are up $1.14 (+4%) year to date.

(Source: Xignite Financials)

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