- Digital Turbine (NASDAQ:APPS) stock is falling due to its earnings report.
- The company missed EPS and revenue estimates for the quarter.
- It also has a weak outlook for the upcoming period.
Digital Turbine (NASDAQ:APPS) stock is falling hard on Wednesday after the monetization company reported results for its fiscal fourth quarter of 2022.
The bad news for APPS stock starts with adjusted earnings per share (EPS) of 39 cents. That’s worse than the 44 cents per share that Wall Street was expecting for the quarter. Even if it is an increase over the 25 cents per share reported during the same time last year.
Adding to APPS stock’s trouble is revenue of $$184.1 million. Yet again, that comes in nowhere close to the $357.05 million in revenue that analysts were expecting. That’s despite it being a 94% increase year-over-year on a reported basis.
Digital Turbine’s outlook for its fiscal first quarter of 2023 also isn’t helping out APPS stock today. The company expects adjusted EPS ranging from 34 cents to 35 cents on revenue of $183 million to $187 million. For the record, Wall Street is estimating an adjusted EPS of 50 cents on revenue of $396.59 million for that quarter.
Bill Stone, CEO of Digital Turbine, said the following in its earnings release:
While macro headwinds will present certain challenges for nearly all companies in the short-term, I am confident that those headwinds will be less impactful for highly profitable growth businesses like ours generating nine-figures of free cash flow per year.
Heavy trading of APPS stock follows its most recent earnings report today. That has some 9 million shares on the move, as compared to its daily average trading volume of 2.8 million shares.
APPS stock is down 14.1% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.