Glu Mobile Beats On Earnings; Cie Games Acquisition Dampers Results
Glu Mobile (NASDAQ: GLUU) fell in Wednesday's after-hours trading by 9.86 percent. The downward momentum was primarily driven by the shareholder dilution that would come as a result of acquiring Cie Games.
Glu Mobile agreed to acquire Cie Games for $100 million, $70 million in shares of the common stock, and $30 million in cash. Whether the deal is going to offer any meaningful accretion is completely up for debate, as Glu Mobile didn't disclose the amount of revenue Cie Games generates.
The only quantitative metric that was mentioned was the 100 million in app installs that Racing Rivals had. Gauging the initial reaction in the after-hours session, and one can guess that there's a lot of uncertainty.
However, moving to earnings, the company reported Non-GAAP revenue of $35 million, which was $1 million above analyst consensus estimates. The Non-GAAP EPS was $(.02), analysts on a consensus basis were anticipating a Non-GAAP EPS of $(.04), for Q2. Glu Mobile had a 2 cent beat on earnings.
Glu Mobile offered revenue guidance of $80 million to $85 million, along with Non-GAAP EPS guidance of $.09 and $.11 (excludes amortization and stock based compensation expense) for Q3 2014.
Analysts on a consensus basis anticipate $51 million in non-GAAP revenue for Q3, and $0.05 non-GAAP EPS, for Q3 2014.
The results, and outlook were solid beats, however the announcement of the deal caused the pandemonium in the after-hours trading session.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.