The 10-second takeaway
For the quarter ended March 31 (Q1), Glu Mobile beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share improved.
Gross margins grew, operating margins dropped, and net margins dropped.
Glu Mobile tallied revenue of $21.6 million. The six analysts polled by S&P Capital IQ expected to see a top line of $18.8 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $16.4 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 -$0.11. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. GAAP EPS were -$0.11 for Q1 compared to -$0.06 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 88.1%, 1,150 basis points better than the prior-year quarter. Operating margin was -28.0%, 1,530 basis points worse than the prior-year quarter. Net margin was -31.8%, 1,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $20.3 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $87.8 million. The average EPS estimate is -$0.38.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 157 members out of 185 rating the stock outperform, and 28 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Glu Mobile a green thumbs-up, and nine 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 $6.57.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Glu Mobile makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Glu Mobile to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.