Glu Mobile Inc. (NasdaqGS:GLUU) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.
The company is expected to report earnings of $0.07/share on revenue of $137.2 million. The consensus earnings per share (EPS) of $0.07/share is based on a poll of 10 analysts and represents a growth in eps of 7.9% over the same quarter last year, when the company reported earnings of $0.07/share.
The revenue forecast of $137.2 million based on a poll of 11 analysts implies a year-over-year (YoY) growth in revenue of 14.0%. Last year the company reported $120.4 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $137.24 | $120.40 | 14.0% |
| EPS | $0.07 | $0.07 | 7.9% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and met expectations 2 quarters.
What are your expectations from Glu Mobile Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $0.08 | $0.19 | 127.1% | Beat |
| Q1, 2020 | $0 | $0 | 0% | Met |
| Q4, 2019 | $0.08 | $0.09 | 16.1% | Beat |
| Q3, 2019 | $0.03 | $0.07 | 112.9% | Beat |
| Q2, 2019 | $0.05 | $0.06 | 20.0% | Beat |
| Q1, 2019 | $0.05 | $0.06 | 23.7% | Beat |
| Q4, 2018 | $0.07 | $0.09 | 27.5% | Beat |
| Q3, 2018 | $0.07 | $0.07 | 0% | Met |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −15.5%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 4, 2020 | $9.80 | $8.28 | −15.5% | Decline |
| May 7, 2020 | $8.73 | $10.25 | 17.3% | Increase |
| February 5, 2020 | $6.25 | $8.10 | 29.7% | Increase |
| November 6, 2019 | $5.94 | $5.47 | −7.9% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.35, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.35 implies a 0.9% chance of earnings manipulation.
Fundamentals And Technical Analysis
Glu Mobile Inc. is currently trading at $7.16/share, down −2.6% for the day. The company is trading at approximately 66.0% of its 52-week high of $10.85/share. The company’s stock price is down −13.5% since the last earnings report and down −9.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 37.52 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −109.83 and a forward P/E multiple of 20.27.
Glu Mobile Inc.’s current share price also implies a price-to-book (P/B) multiple of 3.35. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $7.16 |
| P/E Ratio | −109.8x |
| P/E Ratio (Fwd) | 20.3x |
| PEG Ratio | 0.1 |
| Total Debt / Total Capital | 3.2% |
| Levered Free Cash Flow | $16.396 million |
| EV / EBITDA | −84.5x |
Glu Mobile Inc. is a small-cap stock with a market capitalization of $1.223 billion and a total enterprise value of $981.6 million. The company operates in the Communication Services sector and the Entertainment industry.
Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. It publishes titles primarily in four genres, including lifestyle, casual, mid-core, and sports and outdoors. The company’s portfolio of compelling games based on its own intellectual property, such as Cooking Dash, Covet Fashion, Deer Hunter, Design Home, Diner DASH Adventures, and QuizUp, as well as games based on or significantly incorporating third party licensed brands, including Kim Kardashian: Hollywood, MLB Tap Sports Baseball, and Restaurant Dash with Gordon Ramsay, as well as Disney Sorcerer’s Arena. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, and others. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was founded in 2001 and is headquartered in San Francisco, California.
