Unity Software stock skyrockets as 2022 revenue forecasts tops estimates

Unity Software Inc. (NYSE:U), a provider of video game design and animation software, saw its stock soar on Friday after beating Wall Street’s fourth-quarter projections and forecasting greater earnings for the full year. As a result of the announcement, the price of Unity stock increased by almost 17%.

Unity stock fundamental analysis

The San Francisco-based company reported a loss of adjusted 5 cents per share on revenues of $315.9 million in the December quarter, late Thursday. According to FactSet, analysts projected Unity to lose 7 cents per share on $295.5 million in sales. In the previous year, the company lost 10 cents per share on $220.3 million in sales.

In addition, Unity anticipates sales of $317.5 million in the current quarter, up 35% from the previous quarter and in line with Wall Street projections. Unity expects $1.5 billion in sales for the entire year of 2022, compared to the $1.43 billion predicted by analysts. This would be a 35 percent rise from the previous year. In 2021, Unity’s sales climbed by 44% to $1.11 billion.

Unity stock technical analysis

Source – TradingView

Unity stock rose 17.4 percent to end at $108.66 on Wednesday. During the regular trading session on Thursday, Unity stock sank 9.3 percent to $92.54. Thursday was a day when stocks in general had a bad day.

Unity has been trading in a broad range in the previous month, ranging from $90.11 to $136.60. It is currently trading near the range’s lows. In addition, the stock is currently trading around the bottom of its 52-week range. The S&P 500 Index, on the other hand, is trading towards the top of its 52-week range.

For some years now Unity has been running at a loss. However, according to Unity’s Chief Financial Officer Luis Visoso, the company plans to break even in 2023.

The post Unity Software stock skyrockets as 2022 revenue forecasts tops estimates appeared first on Invezz.

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