Glu Mobile Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Glu Mobile (NAS: GLUU) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Glu Mobile beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share increased.


Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
 Glu Mobile logged revenue of $23.6 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $21.5 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $17.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$0.05. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. GAAP EPS were -$0.05 for Q2 versus -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 90.9%, 860 basis points better than the prior-year quarter. Operating margin was -20.8%, 1,270 basis points worse than the prior-year quarter. Net margin was -12.6%, 270 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $22.6 million. On the bottom line, the average EPS estimate is -$0.10.

Next year's average estimate for revenue is $92.4 million. The average EPS estimate is -$0.37.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 169 members out of 196 rating the stock outperform, and 27 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 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 $7.10.

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The article Glu Mobile Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.

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