We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Changyou (CYOU) to Report Q4 Earnings: What to Expect?
Read MoreHide Full Article
Changyou.com Limited is expected to report fourth-quarter 2016 results sometime around Feb 6, 2017. Last quarter, the company delivered a positive earnings surprise of 52.08%. Also, the company delivered positive earnings surprises in the last four quarters, bringing the average to 27.22%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Changyou has gained recognition for its offerings like Tian Long Ba Bu (TLBB) and Blade Online. However, these days, the popularity of PC games is dwindling because of rapid migration to mobile games. To keep up with the change, Changyou has stepped up its R&D efforts to develop more innovative and user friendly mobile games, leveraging its own huge PC games user base.
Changyou is also concentrating on e-sports. E-sports is fast emerging as a lucrative business opportunity. The company is also dabbling into virtual reality. Last year, Changyou and Tencent struck a licensing deal for TLBB mobile games. The company said that it was betting big on Tencent’s distribution capabilities along with its research in hard core games to bring erstwhile PC game players to mobile.
However, Changyou is facing operational challenges from the ongoing transition. Also, sluggish online game and advertising businesses continue to hurt margins. Increasing competition remains an added concern.
For the fourth quarter of 2016, Changyou expects total revenue to be in a band of $120 million to $130 million. Online gaming revenues are projected between $85 million and $95 million. Non-GAAP earnings are expected to be in a range of 65 to 66 cents.
Earnings Whispers
Our proven model does not conclusively show that Changyou is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Changyou currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 61 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Changyou has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Pandora Media, Inc. with an Earnings ESP of +8.11% and a Zacks Rank #3.
CenturyLink, Inc. with an Earnings ESP of +1.79% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access.Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Changyou (CYOU) to Report Q4 Earnings: What to Expect?
Changyou.com Limited is expected to report fourth-quarter 2016 results sometime around Feb 6, 2017. Last quarter, the company delivered a positive earnings surprise of 52.08%. Also, the company delivered positive earnings surprises in the last four quarters, bringing the average to 27.22%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Changyou has gained recognition for its offerings like Tian Long Ba Bu (TLBB) and Blade Online. However, these days, the popularity of PC games is dwindling because of rapid migration to mobile games. To keep up with the change, Changyou has stepped up its R&D efforts to develop more innovative and user friendly mobile games, leveraging its own huge PC games user base.
Changyou is also concentrating on e-sports. E-sports is fast emerging as a lucrative business opportunity. The company is also dabbling into virtual reality. Last year, Changyou and Tencent struck a licensing deal for TLBB mobile games. The company said that it was betting big on Tencent’s distribution capabilities along with its research in hard core games to bring erstwhile PC game players to mobile.
However, Changyou is facing operational challenges from the ongoing transition. Also, sluggish online game and advertising businesses continue to hurt margins. Increasing competition remains an added concern.
For the fourth quarter of 2016, Changyou expects total revenue to be in a band of $120 million to $130 million. Online gaming revenues are projected between $85 million and $95 million. Non-GAAP earnings are expected to be in a range of 65 to 66 cents.
Earnings Whispers
Our proven model does not conclusively show that Changyou is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Changyou currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 61 cents.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Changyou has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Changyou.com Limited Price and EPS Surprise
Changyou.com Limited Price and EPS Surprise | Changyou.com Limited Quote
Stocks to Consider
Here are a few stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Twilio Inc. (TWLO - Free Report) with an Earnings ESP of +8.33% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pandora Media, Inc. with an Earnings ESP of +8.11% and a Zacks Rank #3.
CenturyLink, Inc. with an Earnings ESP of +1.79% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access.Click here for Zacks' private trades >>