Perfect World Co. Ltd. Earnings: Here’s Why Shares are Up Now

Perfect World Co., Ltd. (NASDAQ:PWRD) 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. Shares are up 2%.

Perfect World Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35.29% to $0.33 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Rose 8.41% to $115.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Perfect World Co., Ltd. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.30. It beat the average revenue estimate of $109.01 million.

Quoting Management: Mr. Robert Xiao, CEO of Perfect World commented, “We are pleased to announce our results for the second quarter of 2013. Our revenues rose by 13.5% quarter-over-quarter, beating the high end of our expectations. Our strong second quarter performance was mainly driven by the successful launches of two of our new games, namely ‘Saint Seiya Online,’ a 3D comic-based MMORPG launched in China in mid-May, and ‘Neverwinter,’ a widely-acclaimed MMORPG launched in North America and Europe at the end of April. In addition, we also launched a number of web and mobile games during the quarter and are working on more varied titles which will further diversify our deep game pipeline.”

Key Stats (on next page)…

Revenue increased 14.84% from $100.49 million in the previous quarter. EPS decreased 23.26% from $0.43 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.35 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $9.41 to a profit of $1.54 over the last ninety days.

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