Glu Mobile's (NASDAQ:GLUU) strong quarterly results helped it defy the market sell-off driven by concerns about the SARS-CoV-2 novel coronavirus late in February. The video game company's shares rose 20.7% last month, according to data from S&P Global Market Intelligence.
Glu reported fourth-quarter and full-year results on Feb. 5, delivering sales and earnings that topped the average analyst estimates. The company recorded earnings per share of $0.07 on revenue of $112.9 million, coming in significantly ahead of the average analyst estimate's target for per-share earnings of $0.01 on sales of $103.4 million.
Glu's sales were up 18% year over year in the fourth quarter, with bookings climbing 10% annually to reach $108.4 million. The company's strong performance was driven by titles including Design Home and Covet Fashion, which each posted record quarterly bookings. The company's Tap Sports Baseball also posted its best-ever fourth-quarter performance.
The mobile-focused video game company recorded its best-ever period of fourth-quarter profitability, and investors were also bullish on the company's outlook for the current fiscal year. Glu expects 2020 bookings to be between $423 million and $433, with the midpoint of the target suggesting that the company could deliver roughly 1% bookings growth despite not accounting for any new releases in the year.
Glu stock has been hit amid big sell-offs for the market early in March. Shares are down roughly 14% in the month's trading.
Markets opened in free-fall on Monday as plummeting crude-oil prices and concerns about the novel coronavirus bolstered bearish sentiment. Glu Mobile stock could continue to be volatile until the outlook for the coronavirus situation and the oil markets becomes clearer.
Glu is valued at roughly 24 times this year's expected earnings and two times expected sales.