Will Changyou.com Beat These Analyst Estimates?

Changyou.com (Nasdaq: CYOU  ) is expected to report Q2 earnings on July 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Changyou.com's revenues will increase 24.3% and EPS will expand 1.5%.

The average estimate for revenue is $183.1 million. On the bottom line, the average EPS estimate is $1.37.

Revenue details
Last quarter, Changyou.com booked revenue of $177.6 million. GAAP reported sales were 30% higher than the prior-year quarter's $136.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.45. GAAP EPS of $1.46 for Q1 were 20% higher than the prior-year quarter's $1.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 83.1%, 130 basis points worse than the prior-year quarter. Operating margin was 57.2%, 120 basis points worse than the prior-year quarter. Net margin was 43.7%, 400 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $743.9 million. The average EPS estimate is $5.70.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 186 members out of 215 rating the stock outperform, and 29 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Changyou.com a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Changyou.com is outperform, with an average price target of $36.07.

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