Unity Software $U Stock Beats On EPS and Revenue

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U stock reported on February 3, 2022, and beat on both EPS and revenue.

Unity Announces Fourth Quarter and Full Year 2021 Financial Results

Unity Software Inc. (NYSE: U), the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content, today announced fourth quarter 2021 revenue of $315.9 million, which is up 43% from the same period in 2020 and ahead of guidance. Additionally, the company announced full-year 2021 revenue of $1.1 billion, a growth of 44% year-over-year. Unity Software reported Q4 adjusted EPS of (5c) versus the consensus estimate of (7c). The company reported Q4 revenue of $315.9M versus the consensus estimate of $295.51M.

“Unity’s strong fourth-quarter and full-year results were driven by exceptional execution and innovation by the Unity teams,” said John Riccitiello, President and Chief Executive Officer, Unity. “We believe that the transition from linear 2D to interactive real-time 3D, presents a massive growth opportunity for the next decades. These are strong tailwinds that help us drive growth for years to come.”

Unity Software added to Best Ideas List at Wedbush

On January 27, 2022, Wedbush analyst Michael Pachter added Unity shares to the Wedbush Securities Investment Committee’s Best Ideas List. The analyst views the current share price level as a compelling entry point given the recent broader technology stock selloff and several potential long-term tailwinds that should benefit Unity and its shareholders. Pachter expects the Weta Digital acquisition to strengthen Unity’s position within the gaming market and augment its expansion into non-gaming verticals. Within Operate, he expects in-game ads to increase as a percentage of game publisher ad budgets in response to ATT/IDFA. Unity’s focus on 3D content, technology suite, massive data set, customer list, and digital asset library should enable it to be among the key contributors to the development of the Metaverse, the analyst contends. Pachter has an Outperform rating and a price target of $175 on the shares.

Unity acquires Ziva Dynamics, terms not disclosed

On January 24, 2022, Unity said it has acquired Ziva Dynamics, a player in sophisticated simulation and deformation, machine learning, and real-time character creation. “We, as humans, are uniquely attuned to react to human movement,” Unity said in a blog post. “We have an entire section of our brains dedicated to rapidly processing faces and expressions. Creating digital humans that meet the quality and natural dynamics needed to truly satisfy our minds can be a complicated and painful effort, requiring both expert knowledge and extreme perseverance. Ziva Dynamics is solving that problem. The Ziva team has deep expertise and understanding of complex anatomical simulation and real-time artistry tools. Their incredible technology is paving the way for lifelike real-time characters and scalable, accessible workflows.” Source: https://blog.unity.com/technology/welcome-ziva-dynamics

Unity an indirect beneficiary of Microsoft/Activision deal, says Piper Sandler

On January 18, 2022, Piper Sandler analyst Brent Bracelin tells investors in a research note that Unity Software (U) is an indirect beneficiary of the $68.7B all-cash acquisition of Activision (ATVI) by Microsoft (MSFT) given its agnostic position as the leading 3D creator platform for gaming, movies, AR/VR and metaverse applications. The analyst, who made no change to his Overweight rating or $180 price target on Unity shares, thinks Unity cans further expand its footprint as a 3D creator platform in the coming year.

📺 Unity Software CEO on how the company’s software enables 3D in industries beyond video games

Unity Software CEO on how the company's software enables 3D in industries beyond video games

📉 U Stock Technical Analysis

U Stock

The short term trend is negative, as is the long term trend. U is part of the Software industry. There are 357 other stocks in this industry, U did better than 57% of them. U is currently trading in the lower part of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so U is lagging the market.

U has a poor technical rating and the quality of the setup is also not perfect at the moment. U stock has a Setup Rating of 4 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when U stock consolidates and has a Setup Rating of 8 or higher.

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