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.

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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

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.

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