The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Glu Mobile met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share contracted.
Margins expanded across the board.
Glu Mobile notched revenue of $21.2 million. The 10 analysts polled by S&P Capital IQ expected sales of $21.3 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $16.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.06. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.11 per share. GAAP EPS were -$0.06 for Q3 against -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 89.7%, 970 basis points better than the prior-year quarter. Operating margin was -1.7%, 4,260 basis points better than the prior-year quarter. Net margin was -16.7%, 1,970 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $26.7 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $93.8 million. The average EPS estimate is -$0.34.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 213 rating the stock outperform, and 31 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Glu Mobile a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Glu Mobile is buy, with an average price target of $6.78.
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