Glu Mobile Inc. (NASDAQ: GLUU) stock plunged 12.36% on October 8th, 2018 after ROTH Capital analyst Darren Aftahi downgraded the free-to-play mobile game specialist to neutral from buy. He has also reduced his per-share price target on GLUU by a quarter to $8, marking a more modest premium from Friday’s closing price of $7.20. The stock slightly recovered today by 0.94% (as of 9 Oct, 10:01 AM GMT-4; Source: Google finance).
On the other hand, Glu Mobile shares has already surged 98% in this year to date leading up to today’s session, most recently helped by a post-earnings surge starting in early August after the company’s strong second-quarter 2018 report, which is a performance management credited to its focus on monetizing existing mobile titles like Design Home, Tap Sports, Deer Hunter, and Cooking Dash. Investors could use this rise as an exit opportunity.
GLUU in the second quarter of FY 18 has reported the adjusted earnings per share of 1 cents, missing the analysts’ estimates for the adjusted earnings per share of 5 cents. The company had reported the adjusted revenue of $99.4 million in the second quarter of FY 18, beating the analysts’ estimates for revenue of $91.9 million. The company has reported record bookings increase of20% year-over-year and 15% sequentially to $99.4 million
For the third quarter of 2018, GLUU expects Bookings to be in the range of $94.0 – $96.0. Platform commissions, excluding any impact of deferred platform commissions are expected to be between $23.9 – $24.3. Royalties, excluding any impact of deferred royalties are expected to be in the range of $6.9 – $7.0. Hosting costs are expected to be in the range of $1.8 – $1.8, User acquisition and marketing expenses are expected to be in the range of $22.9 – $23.2, Adjusted other operating expenses are expected to be in the range of $30.0 – $30.2. Depreciation are expected to be in the range of $1.0 – $1.0.
The company has raised 2018 full year bookings guidance to a range of $374.0 million to $378.0 million, an $11.0 million increase at the midpoint. For FY 18, the company expects Platform commissions, excluding any impact of deferred platform commissions are expected to be in the range of $98.1 – $98.7 Royalties, excluding any impact of deferred royalties are expected to be in the range of $26.1 – $26.4, Hosting costs are expected to be of $7.1, user acquisition and marketing expenses are expected to be in the range of $91.6 – $92.3 and Adjusted other operating expenses are expected to be in the range of $119.1 – $119.5.