Glu Mobile, Walt Disney Beat EPS Estimates But Disappoint


Glu Mobile and Walt Disney released their latest earnings report after closing bell tonight. Glu Mobile posted non-GAAP revenue of $64.4 million and non-GAAP income of $7.7 million or 6 cents per share. Analysts had been expecting breakeven earnings with revenue of $59.33 million. In last year’s third quarter, the game maker posted earnings of 16 cents per share and $83.6 million in revenue.

Walt Disney reported adjusted earnings of $1.20 per share, a 35% increase from last year, and revenue of $13.5 billion, a 9% increase year over year. Wall Street had wanted to see earnings of $1.14 per share and $13.55 billion. In last year’s fourth fiscal quarter, the entertainment giant reported earnings of 89 cents per share and revenue of $12.39 billion.

Glu Mobile struggles with install volumes

Glu Mobile’s GAAP revenue was $63.3 million, compared to last year’s $64.8 million, while GAAP income was $158,000 or breakeven, compared to last year’s GAAP earnings of 10 cents per share. Adjusted EBITDA fell to $8.5 million from $15.4 million last year.

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“The supermajority of titles launched in 2015 have underperformed as solid monetization rates were offset by significantly lower-than-expected install volumes,” said Glu Mobile Chairman and CEO Niccolo de Masi in a statement. “We have strengthened our studio with the hiring of a new CTO and President of Studios, as well as Board with the appointment of Greg Brandeau. We remain on the lookout for accretive and strategic uses of our strong balance sheet.”

For the fourth quarter, Glu Mobile expects non-GAAP revenue of $50 million to $52 million and adjusted EBITDA of between a loss of $2 million and a loss of $3 million. They project non-GAAP net losses of between 2 cents and 3 cents per share or $2.9 million to $3.9 million in losses. For the full year, they expect non-GAAP revenue of $234.3 million to $236.5 million and adjusted EBITDA of $11 million to $12 million.

Shares of Glu Mobile fell as low as $3.10 per share in after-hours trades following tonight’s earnings report.

Walt Disney sees growth in most segments

Walt Disney’s net income was 95 cents per share, a 10% increase from last year’s 86 cents per share. Media Networks revenues increased 12% to $5.8 billion, while Parks and Resorts revenues increased 10% to $4.4 billion. Studio Entertainment revenue remained flat at $1.78 billion, while Consumer Products revenue increased 11% to $1.2 billion. Interactive revenue declined 4% to $347 million.

Shares of Walt Disney slumped by as much as 1.27% to $111.56 per share in after-hours trades following tonight’s earnings report.


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