What's Going On With Unity Software Stock?

Unity Software Inc U shares are falling on Thursday after the company reported weak earnings results and issued guidance below analyst estimates. Several analysts also adjusted ratings Thursday morning, although the changes are all over the place.

• Q4 Revenue: $451 million beat estimates of $438.81 million
• Q4 EPS: $(0.82) missed estimates of $0.02

Create Solutions 2022 revenue grew 41% year-over-year. Revenue growth was broad-based, with games up 24% year-over-year and industries (beyond games) up 118% year-over-year. 

Grow Solutions 2022 revenue increased 12% year-over-year. Unity said its Grow Solutions segment was impacted by portfolio and executional gaps, which are now behind the company, as well as a challenging economic environment.

"While we are not forecasting a recovery in the in-game ads market in 2023, we believe it is possible when the economy improves," the company said.

Unity sees first-quarter revenue in a range of $470 to $480 million versus the $524.79 million estimate. Full-year 2023 revenue is expected to be in the range of $2.05 billion to $2.2 billion against an estimate of $2.22 billion. 

See Also: What's Going On With Enovix Stock Today?

Analyst Assessment:

• Piper Sandler analyst Brent Bracelin maintained Unity with an Overweight and raised the price target from $33 to $43.
• Needham analyst Bernie McTernan maintained Unity with a Buy and raised the price target from $35 to $44.
• Oppenheimer analyst Martin Yang downgraded Unity from Outperform to Perform.
• Credit Suisse analyst Stephen Ju maintained Unity with an Outperform and lowered the price target from $71 to $67.

U Price Action: Unity has a 52-week high of $109.99 and a 52-week low of $21.22.

The stock was down 6.58% at $35.36 at the time of writing, according to Benzinga Pro.

Photo: Victoria_Watercolor from Pixabay.