Investors are Assessing These 3 Stock Earnings Reports

Changyou.com Limited (NASDAQ:CYOU) reported net income above Wall Street’s expectations for the fourth quarter. 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. 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.

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.”

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).

Sohu.com Inc. (NASDAQ:SOHU) in the fourth quarter as profit dropped from a year earlier. Net income for Sohu.com Inc. fell to $26.9 million (65 cents per share) vs. $44 million ($1.07 per share) a year earlier. This is a decline of 38.9% from the year earlier quarter. Revenue rose 42.2% to $246.2 million from the year earlier quarter. Sohu.com Inc. reported adjusted net income of $1.36 per share. By that measure, the company beat the mean estimate of $1.23 per share. Analysts were expecting revenue of $242.4 million.

Dr. Charles Zhang, Chairman and CEO of Sohu.com Inc. commented, “We are pleased to report a strong fourth quarter that helped us finish a solid year for 2011. For online advertising, our conscientious efforts in growing online video and search businesses are bringing strong growth in revenues, users and traffic. These businesses, along with our portal business, are contributing to give the Sohu Group a powerful integrated online marketing platform. In 2012, we aim to make this platform even more dominant in China’s internet market.”

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).

NCR Corporation (NYSE:NCR) reported its results for the fourth quarter. Reported a loss of $9 million (6 cents per diluted share) in the quarter. The information technology services company had net income of $39 million or 24 cents per share in the year earlier quarter. Revenue rose 16.7% to $1.64 billion from the year earlier quarter. NCR Corporation reported adjusted net income of 65 cents per share. By that measure, the company beat the mean estimate of 57 cents per share. It beat the average revenue estimate of $1.58 billion.

“2011 was a highly successful year for NCR as our consistent execution drove record revenues and gross margin and excellent free cash flow growth,” said Bill Nuti, chairman and CEO of NCR. “We generated strong order growth in our core financial and retail businesses and these businesses closed the year with the highest combined backlog in our history. We also established an attractive third core vertical – Hospitality and Specialty Retail – that furthers our strategy of improving our revenue mix in favor of software and services. Looking ahead, we are operating with an intense focus on mining the significant opportunities in our core businesses, as well as our growing presence in emerging verticals, such as Telecom & Technology and Travel, that leverage both our ability to innovate and our strong services footprint.”

Competitors to Watch:
Diebold Incorporated (NYSE:DBD), VeriFone Systems, Inc. (NYSE:PAY), Hypercom Corporation (NYSE:HYC), PAR Technology Corporation (NYSE:PAR), Radiant Systems, Inc. (NASDAQ:RADS), Coinstar, Inc. (NASDAQ:CSTR), Hewlett-Packard Company (NYSE:HPQ), Crane Co. (NYSE:CR), USA Technologies, Inc. (NASDAQ:USAT), and Intl. Business Machines Corp. (NYSE:IBM).

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