Perfect World Shares Jump On Boosted Outlook

NEW YORK (AP) — Shares of Perfect World Co. jumped to a 52-week high Friday after an analyst raised his estimates and said steady growth will drive the Chinese online gaming company to the high end of its boosted revenue outlook.

Perfect World raised its second-quarter guidance above Street expectations Friday, saying new game "Battle of the Immortals" and its recently released game expansion packs have been more popular than it anticipated.

The company said it now expects revenue of 489 million yuan ($71.7 million) to 510 million yuan ($74.7 million), which would be an increase of 15 percent to 20 percent over the first quarter. Perfect World had previously predicted revenue of 417 million yuan to 434 million yuan.

Analysts polled by Thomson Reuters expect $64 million in revenue, on average.

The company's focus on launching larger game expansion packs has led to increased spending levels, Roth Capital Partners analyst Adam Krejcik wrote in a research note Friday. Overseas licensing revenue also continues to be highly profitable, he said.

"In our opinion, Perfect World is only beginning to benefit from its diversification strategy and we see significant future earnings power," Krejcik said.