Glu Mobile (NASDAQ:) is set to report second-quarter 2019 results on Aug 1.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the average negative surprise being 39.3%.
In the last reported quarter, Glu Mobile reported break-even earnings. Revenues of $95.5 million increased 18% year over year. Moreover, bookings grew 7% year over year to $92.6 million.
The Zacks Consensus Estimate for second-quarter earnings has remained steady at 5 cents over the past 30 days.
Moreover, the consensus mark for second-quarter revenues is pegged at $102 million, indicating an increase of 3% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for bookings is pegged at $102 million, indicating an increase of 2.6% from the figure reported in the year-ago quarter.
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 second-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, these three growth titles together accounted for 78% of total bookings in first-quarter 2019.
Moreover, Glu Mobile launched Diner DASH Adventures and WWE Universe in May. In the to-be reported quarter, the company expects a small contribution in bookings from WWE. The game launches are expected to drive user growth in the to-be-reported quarter.
In the last reported quarter, Glu Mobile’s daily active users (DAUs) were 3.1 million, down 18.4% from the year-ago quarter. Monthly active users (MAUs) were down 23% year over year to 19.1 million.
The Zacks Consensus Estimate for DAUs is pegged at 3.25 million for second-quarter 2019.
Additionally, frequent content updates, feature additions to growth titles 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.
However, softness in advertising bookings is likely to negatively impact bookings growth in second-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 an earnings beat this quarter:
Callaway Golf Company (NYSE:) has an Earnings ESP of +2.97% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SeaWorld Entertainment (NYSE:) has an Earnings ESP of +11.01% and a Zacks Rank #2.
WillScot Corporation (NASDAQ:) has an Earnings ESP of +11.77% and a Zacks Rank #2.
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WillScot Corporation (WSC): Free Stock Analysis ReportCallaway Golf Company (ELY): Free Stock Analysis ReportSeaWorld Entertainment, Inc. (SEAS): Free Stock Analysis ReportGlu Mobile Inc. (GLUU): Free Stock Analysis ReportOriginal postZacks Investment Research