investora2z Saturday, 11/23/13 11:02:49 AM Re: None Post # of 211 The stock has done well over the last one year. It has corrected a bit over the last couple of weeks, but has appreciated 60% in 2013. Recent analyst opinion is positive, with expectations of growth in top and bottomline. The performance in Q2'14 has improved the sentiments as the company beat analyst expectations and upped its EPS guidance for the year. The non-GAAP net revenue of $1.04 billion was above guidance of $975 million, and the Non-GAAP diluted earnings per share of $0.33 was significantly above the guidance of $0.12. The annual earnings per share guidance was increased from $1.20 to $1.25 per share, and the ttm non-GAAP digital net revenue was up 22% to $1.75 billion compared to the previous year. Mobile and handheld non-GAAP digital net revenue increased 19% to $105 million on a yoy basis in Q2 FY14. TheStreet has a hold rating for the stock because of the good stock price performance and growth in earnings per share. However, declining revenues are a matter of concern. The field is highly competitive with strong competitors like Activision, and Zynga. Smaller players like MGT Capital Investments (MGT) are also entering the field indicating the future potential of the space. The stock is trading at 31 times ttm earnings and 15 times forward earnings indicating good growth prospects. The PEG is 1.20. Looking at past performance, the topline has been declining, though the last couple of years have seen minor GAAP net profit. The cash position remains good with $1.42 billion as on 30 September, and the debt was $570 million. The next few quarters will indicate whether the company will be able to revert to a consistent growth trend. The strength of its recent offerings and agreements is likely to drive the growth in the top and bottomline, provided the costs remain under control.