NEW YORK (TheStreet) -- Shares of Glu Mobile (GLUU - Get Report) were falling 16.75% to $4.72 on heavy trading volume Wednesday after the mobile game publisher issued a light guidance for the third quarter.
Glu Mobile said it expects to report a loss of 2 cents a share to break even earnings, and revenue of $58 million to $60 million for the third quarter. Analysts' expect the company to report earnings of 8 cents a share and revenue of $73.75 million for the quarter.
The company said it expects revenue of $267 million to $282 million for full year 2015, compared to analysts' estimates of $280.08 million.
Glu Mobile reported earnings of 1 cent a share for the second quarter, above analysts' estimates of a loss of 4 cents a share. Revenue grew 64% year over year to $57.48 million for the quarter, about analysts' estimates of $51.5 million.
The company also announced that it is developing mobile games focused on hip hop star Nicki Minaj and action movie star Jason Statham.
About 8 million shares of Glu Mobile were traded by 12:42 p.m. Friday, above the company's average trading volume of about 2.5 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 compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: GLUU Ratings Report