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Will Growth Titles Aid Glu Mobile (GLUU) in Q1 Earnings?
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Glu Mobile Inc. is set to report first-quarter 2019 results on May 6.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat estimates in the remaining quarter, the average negative surprise being 26.79%.
In the last reported quarter, Glu Mobile’s daily active users (DAUs) were 3.2 million, down 15.8% from the year-ago period. The Zacks Consensus Estimate for DAUs is pegged at 3.3 million for first-quarter 2019.
Monthly active users (MAUs) were down 26.2% from the year-ago period to 21.1 million in fourth-quarter 2018.
The Zacks Consensus Estimate for first-quarter earnings per share has remained steady at 5 cents over the past seven days. The figure indicates solid growth of 66.7% from the year-ago period reported figure. Notably, the consensus mark for revenues is pegged at $90.2 million, indicating an increase of 4.5% from the year-ago period.
Let’s see how things are shaping up for the upcoming announcement.
A Look at the Key Factors at Play
Glu Mobile’s first-quarter 2019 results are expected to benefit from the strength of its growth titles – Design Home, Covet Fashion and the TSB franchise.
Notably, frequent content updates, feature additions to growth games and the release of Tap Sports Baseball 2019 in first-quarter 2019 are expected to drive growth titles’ bookings in the to-be-reported quarter. This is also expected to boost game monetization opportunities.
Additionally, bookings growth from these titles is expected to boost Glu Mobile’s total bookings. The three growth titles together accounted for 77.3% of total bookings in fourth-quarter 2018. Management expects bookings in the range of $88 to $90 million in first-quarter 2019. The Zacks Consensus Estimate for bookings is pegged at $92 million.
Moreover, Glu Mobile’s strategy to increase in-house games and depend less of licensed IP may help it reduce royalty expenses thereby aiding margins. Notably, adjusted royalties are expected to be $4.4 to $4.5 million in the to-be-reported quarter compared with $6.9 million in fourth-quarter 2018.
However, management expects some seasonality from the TSB franchise. This may negatively impact bookings growth in first-quarter 2019.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Glu Mobile has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post earnings beat this quarter:
SeaWorld Entertainment, Inc. has an Earnings ESP of +16.13% and a Zacks Rank #1.
Rent-A-Center, Inc. has an Earnings ESP of +21.98% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Will Growth Titles Aid Glu Mobile (GLUU) in Q1 Earnings?
Glu Mobile Inc. is set to report first-quarter 2019 results on May 6.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat estimates in the remaining quarter, the average negative surprise being 26.79%.
In the last reported quarter, Glu Mobile’s daily active users (DAUs) were 3.2 million, down 15.8% from the year-ago period. The Zacks Consensus Estimate for DAUs is pegged at 3.3 million for first-quarter 2019.
Monthly active users (MAUs) were down 26.2% from the year-ago period to 21.1 million in fourth-quarter 2018.
Glu Mobile Inc. Price and EPS Surprise
Glu Mobile Inc. Price and EPS Surprise | Glu Mobile Inc. Quote
The Zacks Consensus Estimate for first-quarter earnings per share has remained steady at 5 cents over the past seven days. The figure indicates solid growth of 66.7% from the year-ago period reported figure. Notably, the consensus mark for revenues is pegged at $90.2 million, indicating an increase of 4.5% from the year-ago period.
Let’s see how things are shaping up for the upcoming announcement.
A Look at the Key Factors at Play
Glu Mobile’s first-quarter 2019 results are expected to benefit from the strength of its growth titles – Design Home, Covet Fashion and the TSB franchise.
Notably, frequent content updates, feature additions to growth games and the release of Tap Sports Baseball 2019 in first-quarter 2019 are expected to drive growth titles’ bookings in the to-be-reported quarter. This is also expected to boost game monetization opportunities.
Additionally, bookings growth from these titles is expected to boost Glu Mobile’s total bookings. The three growth titles together accounted for 77.3% of total bookings in fourth-quarter 2018. Management expects bookings in the range of $88 to $90 million in first-quarter 2019. The Zacks Consensus Estimate for bookings is pegged at $92 million.
Moreover, Glu Mobile’s strategy to increase in-house games and depend less of licensed IP may help it reduce royalty expenses thereby aiding margins. Notably, adjusted royalties are expected to be $4.4 to $4.5 million in the to-be-reported quarter compared with $6.9 million in fourth-quarter 2018.
However, management expects some seasonality from the TSB franchise. This may negatively impact bookings growth in first-quarter 2019.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Glu Mobile has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post earnings beat this quarter:
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +16.29% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SeaWorld Entertainment, Inc. has an Earnings ESP of +16.13% and a Zacks Rank #1.
Rent-A-Center, Inc. has an Earnings ESP of +21.98% and a Zacks Rank #2.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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