Glu Mobile Inc. GLUUis slated to release first-quarter 2018 results on May 1.
Last quarter, the company delivered a negative earnings surprise of 366.67%. Moreover, it has delivered an average negative earnings surprise of 177.74% in the trailing four quarters.
However, the mobile game maker posted revenues of $83 million in the last reported quarter, surpassing the Zacks Consensus Estimate of $79 million.
For first-quarter 2018, Glu Mobile expects bookings to be around $73 million.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Glu Mobile’s roster of games, especially evergreen titles, is one of its biggest positives. The company’s diverse gaming portfolio, which includes titles like Kim Kardashian: Hollywood, Design Homeand Covet Fashionare driving top-line growth. Addition of new features and live operations are keeping the interest of users alive.
However, due to the end of the MBL season, management anticipates Tap Sports Baseballto decline at an increasing rate in the soon-to-be-reported quarter, as observed in the prior years.
The company launched MLB Tap Sports Baseball 2018on the App Store and Google Play at the end of the quarter and thus no contribution is expected from it in the soon-to-be-reported quarter.
Unfortunately, Glu’s other celebrity titles like Restaurant Dash: Gordon Ramsayis also losing popularity.
Moreover, rising competition from established players like Electronic Arts EAand Activision Blizzard ATVIremains a concern. Furthermore, we anticipate significant investment in sales and marketing to remain an overhang on margins.