Perfect World Co, Ltd. (PWRD) just reported another awesome quarter, pushing its share price to a new all-time high as the company projects continued strong revenue growth.
Company Description
Perfect World Co., through its subsidiaries, engages in the research, development and licensing of online games in China and the United States. The company was founded in 2004 and has a market cap of $2.19 billion.
Shares of PWRD recently surged to a new 52-week and all-time high after reporting impressive second-quarter results on August 10.
Second-Quarter Results
Revenue was up 56% from last year to $76.3 million. Earnings came in at 78 cents per share, 17 cents ahead of the Zacks Consensus Estimate. Perfect World has surprised in each of the last four quarters by an average 13 cents, or 31%.
The company noted that its user base increased, with 761,000 people in China playing its games during the quarter, up from 619,000 last year. The number of Chinese customers surged, up 400,000 from last year to 1.9 million.
Guidance and Estimates
Perfect World also provided bullish third-quarter earnings guidance, saying it expects revenue of about $80 million, a 45% increase from the same period last year.
The analysts have yet to upgrade their earnings forecasts, but as it stands, the next-year estimate is projecting 15% earnings growth.
Based on the current-year estimate, this stock has a P/E multiple of 16X, a slight discount to the overall market.
The Chart
Shares of PWRD have pretty much been on fire for the last 5 months, rallying from $8.50 in early March to a recent high just shy of $40. Take a look at the great trend below.