Soft Out-Quarter Guidance Again; Delays Becoming Regular
Giant Interactive Group Inc.
Rating: Sector Perform
Price: $7.74
Slight Q2 beat. Giant reported Q2 revenue and EPS of $53.3 million and $0.15, respectively, versus our estimates of $53.0 million and $0.14. The EPS beat came from higher gross margin and lower expenses as Giant trimmed S&M and R&D in the quarter. The company also guided Q3 revenue to a range of between $45.4 million and $50.5 million versus the Street expectation of $58.0 million. Finally, Giant delayed testing of its next game, ZT Online 2, to late Q4 versus the previous expectation for Q3.
GA, Online Games (China) - August 19th, 2009 — 10:49am
