Digital Turbine Stock Is Tumbling Thursday: What's Going On?
Portfolio Pulse from Adam Eckert
Digital Turbine Inc (NASDAQ:APPS) shares fell after reporting Q3 results below expectations and issuing weak guidance. Q3 revenue was $142.63 million versus estimates of $146.21 million, and EPS was 15 cents, missing the 17 cents estimate. Year-over-year revenue decreased by 12%, with net cash from operating activities at $11.7 million and $14.3 million in adjusted free cash flow. The company forecasts full-year 2024 revenue between $547 million and $553 million, below the $572.46 million estimate, and adjusted EPS of 50 to 54 cents, under the 61 cents estimate. CEO Bill Stone remains optimistic about future growth despite near-term challenges. Roth MKM analyst Darren Aftahi maintained a Neutral rating on APPS but lowered the price target from $5.50 to $4.50.
February 08, 2024 | 3:17 pm
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Digital Turbine's stock fell due to lower-than-expected Q3 results and weak future guidance. Revenue and EPS missed estimates, and the company's full-year 2024 revenue and EPS forecasts are below analyst expectations.
The stock price of Digital Turbine is likely to face short-term downward pressure due to the reported earnings miss and the issuance of guidance that falls short of analyst expectations. Such financial underperformance, especially when coupled with a reduction in the price target by analysts, typically leads to negative investor sentiment and a decrease in stock price.
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