Unity (U) stock rocketed higher Wednesday after the video game development software company posted surprising Q4 2024 results. Lifting U stock higher today is the company’s revenue of $457 million beating Wall Street’s estimate of $432.5 million. That’s despite it dropping roughly 25% year-over-year from $609 million. 2025 revenue of $1.813 billion also surpassed analysts’ estimate of $1.79 billion.
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Turning to earnings per share, Unity’s -30 cents missed Wall Street’s estimate of -15 cents for the quarter. Even so, it’s an improvement year-over-year compared to -66 cents. It also helps that 2025 EPS of -$1.68 was better than analysts’ estimate of -$1.73.
Unfortunately, Unity’s Q1 2025 guidance isn’t overly impressive. The company expects revenue for the period to range from $405 million to $415 million, which will miss Wall Street’s estimate of $440.07 million, even at the high end of its outlook. The company also expects Adjusted EBITDA of $60 million to $65 million in Q1 2025.
U Stock Movement Today
While Unity’s earnings report is a bit of a mixed bag, investors are pleased to see revenue above estimates. The stock surged 18.4% higher as of this writing, building on its year-to-date increase of 13.31%. While U stock movement has been positive recently, the shares are still down 17.42% over the last 52 weeks.
Is U Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Unity is Moderate Buy based on four Buy, four Hold, and one Sell ratings over the last three months. With that comes an average price target of $22.80, a high of $27, and a low of $15. This represents a potential 10.2% downside for U stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
