Glu Mobile (GLUU) Stock Falls on Weak Guidance

Glu Mobile (GLUU) shares are lower after the company issues a light guidance for the fourth quarter.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of Glu Mobile (GLUU) - Get Report were falling 15% to $3.11 after the mobile game publisher issued a weak guidance for the fourth quarter.

After the market closed on Thursday, Glu Mobile said it expected a loss of 2 cents to 3 cents a share and revenue of $50 million to $52 million for the fourth quarter. Analysts expect the company to report earnings of 6 cents a share and revenue of $94.2 million for the quarter.

Glu Mobile reported earnings of 6 cents a share for the third quarter, above analysts' estimates of break even earnings. Revenue fell 22.9% year over year to $64.4 million in the third quarter, above analysts' estimates of $59.33 million.

The mobile game publisher also announced that it reached a partnership with Tencent (TCEHY) to bring the Chinese publisher's WeFire game to North America, South America, Europe, the Middle East, Australia, and New Zealand in 2016.

About 7.8 million shares of Glu Mobile were traded by 10:31 a.m. Friday, above the company's average trading volume of about 2.4 million shares a day.

TheStreet Ratings team rates GLU MOBILE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate GLU MOBILE INC (GLUU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

You can view the full analysis from the report here: GLUU

GLUU data by YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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