Why Unity Software's Stock Is Trading Higher Today

Unity Software Inc U is trading higher Wednesday after the company announced better-than-expected second-quarter financial results and issued third-quarter and full-year revenue guidance above estimates. 

Unity reported an adjusted quarterly earnings loss of 2 cents per share, which beat the estimate for a loss of 13 cents per share. The company reported quarterly revenue of $273.6 million, which beat the estimate of $243.12 million. 

Unity expects third-quarter revenue to be in a range of $260 million to $265 million, which came in above the estimate of $253.9 million. The company raised its full-year revenue guidance to a range of $1.045 billion to $1.06 billion.

"While our strong performance is broad based, we are particularly proud of the performance from our Operate Solutions group that expanded market share in a tough environment. Our strong performance gives us confidence to raise guidance for the year, again," said Luis Visoso, CFO of Unity.

Analyst Assessment: Piper Sandler analyst Brent Bracelin maintained Unity with an Overweight rating and raised the price target from $150 to $152.

Stifel analyst Tom Roderick maintained Unity with a Buy rating and raised the price target from $125 to $135.

Price Action: Unity has traded as high as $174.94 and as low as $65.11 over a 52-week period.

At last check Wednesday, the stock was up 8.86% at $116.64.

Photo: courtesy of Unity.