What to Expect from Giant Interactive Group

Giant Interactive Group (NYSE: GA  ) is expected to report Q4 earnings on Feb. 26. 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 Giant Interactive Group's revenues will grow 16.0% and EPS will increase 23.5%.

The average estimate for revenue is $91.0 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
Last quarter, Giant Interactive Group chalked up revenue of $87.2 million. GAAP reported sales were 20% higher than the prior-year quarter's $71.7 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 $0.22. GAAP EPS of $0.20 for Q3 were 17% lower than the prior-year quarter's $0.24 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 86.2%, about the same as the prior-year quarter. Operating margin was 60.1%, 120 basis points worse than the prior-year quarter. Net margin was 57.4%, 2,150 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $343.7 million. The average EPS estimate is $0.85.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 590 members out of 612 rating the stock outperform, and 22 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Giant Interactive Group a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Giant Interactive Group is outperform, with an average price target of $6.37.

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