Glu Mobile Plunges, Sony Surges: Tech Winners & Losers

NEW YORK (TheStreet) –– Glu Mobile (GLUU) shares tanked 16.3% this morning after its earnings predicted narrower gross margins next quarter.

In its second quarter, Glu lost 2 cents per share on revenues of $35.0 million, compared to a loss of 5 cents per share on revenues of $23.2 million a year earlier. This represents a 51% revenue increase year-over-year. Analysts polled by Thomson Reuters expected the company to lose 2 cents per share on revenues of $34.0 million. Gross margins for the third quarter will be 58%, down from 69% in the second quarter.

Glu, the maker of the wildly popular game Kim Kardashian: Hollywood, also increased its full-year revenue guidance to between $222.0 million and $232.0 million, up from its previous forecast of between $155.0 million and $161.5 million. The earnings are projected to be between 17 cents and 21 cents per share, up from between 2 cents and 3 cents Analysts expect the company will earn 12 cents a share on revenues of $217.9 million.

“Our second quarter results were boosted by the continued strength of Deer Hunter 2014 and Eternity Warriors 3 in addition to the exceptional early performance of Kim Kardashian: Hollywood,” said CEO Niccolo de Masi in the press relase. “Kim Kardashian: Hollywood has broken Glu single-day revenue and sustained ARPDAU records, while Dino Hunter: Deadly Shores, has achieved a Glu single-day download record. These two titles simultaneously achieved the #1 and #3 chart positions on the U.S. App Store Top Free for iPhone.”

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