Digital Turbine (APPS) is still pushing to higher highs.
APPS, which provides media and mobile communication solutions for mobile operators, application developers, device original equipment manufacturers, has seen its stock run from a low of $12 to $86 and could run to $100 with this momentum.
APPS is still rising after the company said it would acquire AdColony from Otello Corporation. The move could strengthen Digital Turbine’s advertising business with AdColony’s 1.5 billion monthly active mobile ad platform users.
“The acquisition of AdColony is fully consistent with Digital Turbine’s expressed strategy to provide a comprehensive media and advertising solution for our operator and OEM partners while enriching the mobile experience for end users by delivering highly relevant content to their fingertips. The acquisition is subject to approval of the Otello shareholders and is expected to close in the Company’s fiscal fourth quarter,” according to a company press release.
APPS Earnings Better than Expected
The company just said revenue soared 146% to $88.6 million. That was well above the $75.9 million analysts were looking for. Net income came in at $20 million, or 21 cents a share, which was also above expectations for 18 cents. Better, EBITDA tripled to $22.5 million.
Guidance also came in well ahead of expectations. Revenue is expected to be in the range of $298 million to $300 million, compared with the $280.4 million. Adjusted EPS for the year could be $0.67, which would also be ahead of estimates for $0.63.
“Our strong third quarter results represented an acceleration of the breakout momentum achieved in the first half of the fiscal year,” said Bill Stone, CEO.
Ian Cooper’s Personal Position in APPS: None
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