Shanda Games' shares jump on first profit beat
Wed Mar 2, 2011 11:31am EST
(Reuters) - Shares of Shanda Games Ltd (GAME.O) rose 13 percent a day after the company's profit topped expectations for the first time.
"We are optimistic that a stable revenue stream from existing games coupled with a healthy pipeline could reinvigorate revenue growth in 2011," ThinkEquity analyst Atul Bagga, who upgraded the company's stock a notch to "Buy," said in a note.
The Shanghai-based company also said its board approved a plan to buyback $150 million worth of ADS over the next two years.
For the fourth quarter, the Chinese game developer, which charges users subscription revenue for online multiplayer games, reported earnings of 20 cents per ADS on revenue of $174 million.
Analysts on average were looking for earanings of 17 cents per ADS on revenue of $174 million, according to Thomson Reuters I/B/E/S.
Shares of the company were up 13 percent at $6.49 in morning trade on Nasdaq.
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