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Glu Mobile (GLUU) to Report Q3 Earnings: What's in Store?

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Glu Mobile (GLUU - Free Report) is set to report third-quarter 2019 results on Nov 6.

The Zacks Consensus Estimate for third-quarter earnings has remained steady at 3 cents over the past 30 days.

Moreover, the consensus mark for third-quarter revenues is pegged at $111.48 million, indicating an increase of 10.7% from the figure reported in the year-ago quarter.

In the last reported quarter, Glu Mobile reported earnings of 6 cents per share, which beat the Zacks Consensus Estimate by 1 cent.

Revenues of $95.5 million increased 5.9% year over year.

Notably, the company’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters, the average negative surprise being 9.29%.

Glu Mobile Inc. Price and EPS Surprise

Glu Mobile Inc. Price and EPS Surprise

Glu Mobile Inc. price-eps-surprise | Glu Mobile Inc. Quote

Here’s What to Expect

Glu Mobile’s third-quarter 2019 results are expected to benefit from the strength of its growth titles – Design Home, Covet Fashion and the Tap Sports Baseball franchise.

Notably, in the second quarter, these three growth titles grew 12% year over year to $84.8M and together accounted for 83% of total bookings compared with 76% in the year-ago quarter.

For the third quarter, the company expects bookings in the range of $110-$112 million. The Zacks Consensus Estimate for bookings is pegged at $112 million, indicating an increase of 15.5% from the figure reported in the year-ago quarter.

Additionally, Glu Mobile launched Diner DASH Adventures and WWE Universe in the last quarter. In the to-be-reported quarter, the company is expected to have benefited from a small contribution in bookings from WWE.

Notably, bookings grew 2.5% year over year to $101.9 million in second-quarter 2019.

Moreover, Diner DASH Adventures and WWE Universe are also likely to have driven user growth in the to-be-reported quarter.

The Zacks Consensus Estimate for daily active users (DAUs) is pegged at 3.18 million for third-quarter 2019.

In the last reported quarter, Glu Mobile’s DAUs were 3.2 million. Monthly active users (MAUs) were 19.1 million.

Notably, during the third quarter, the company continued to work on updates for Disney Sorcerer’s Arena that included new feature additions like club war, refresh challenges, enhanced social features and streamlining new user flow among others.

Further, frequent content updates, feature additions to other growth titles and the release of Tap Sports Baseball 2019 (in first-quarter 2019) are expected to have driven growth titles’ bookings in the to-be-reported quarter.

This is also expected to have boosted game monetization opportunities for Glu Mobile in third-quarter 2019.

However, softness in advertising bookings is expected to have negatively impacted bookings growth in third-quarter 2019.

Decline in user acquisition and retention in catalog of older titles such as Kim Kardashian: Hollywood, Cooking Dash, Gordon Ramsay DASH and Deer Hunter are likely to have been dampeners.

Moreover, higher operating expenses including sales & marketing to support the recent launch of Diner DASH Adventures is expected to have hurt the top line in the to-be reported quarter.

What Our Model Says

According to the Zacks model, the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP  increases the odds of an earnings beat.

Glu Mobile has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult. 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 an earnings beat this quarter:

iHeartMedia Inc. (IHRT - Free Report) has an Earnings ESP of +3.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty Broadband Corporation (LBRDK - Free Report) has an Earnings ESP of +5.75% and a Zacks Rank #2.

Twin River Worldwide Holdings (TRWH - Free Report) has an Earnings ESP of +13.25% and a Zacks Rank #2.

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