Shanda Games Ltd Second Quarter Earnings Sneak Peek

Shanda Games Ltd (NASDAQ:GAME) will unveil its latest earnings on Tuesday, August 23, 2011. Shanda Games Ltd. is an online game company in China in terms of the size and diversity of its game portfolio.

Shanda Games Ltd Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 18 cents per share, a rise of 12.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 17 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 18 cents during the last month. For the year, analysts are projecting net income of 73 cents per share, a rise of 7.4% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of 18 cents per share, and the previous quarter, it had net income of 20 cents.

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Wall St. Revenue Expectations: On average, analysts predict $201 million in revenue this quarter, a rise of 22.6% from the year ago quarter. Analysts are forecasting total revenue of $828.1 million for the year, a rise of 21.7% from last year’s revenue of $680.2 million.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, none rating it as a sell and five rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

A year-over-year revenue increase in the first quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 14.2% in the first quarter and fell 6.7% in the fourth quarter of the last fiscal year and 12.1% in the third quarter of the last fiscal year.

Competitors to Watch: Limited (NASDAQ:CYOU), KONAMI CORPORATION (NYSE:KNM), The9 Limited (NASDAQ:NCTY), Activision (NASDAQ:ATVI), Electronic Arts (NASDAQ:ERTS), Majesco Entertainment (NASDAQ:COOL), Glu Mobile Inc. (NASDAQ:GLUU), and THQ Inc. (NASDAQ:THQI).

Stock Price Performance: During May 23, 2011 to August 17, 2011, the stock price had fallen $1.87 (-27.3%) from $6.86 to $4.99. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight-straight days, falling 22.3% (-$1.39) over that span. The stock price saw one of its best stretches over the last year between April 8, 2011 and April 18, 2011 when shares rose for seven-straight days, rising 17.1% (+$1.11) over that span. Shares are down $1.44 (-22.4%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.