Unity Software Beats Third-Quarter Targets, Buys Weta Digital

Investors2021-11-10

Video game design and animation software maker Unity Software late Tuesday crushed Wall Street's sales target for the third quarter and reported a smaller loss than expected. Unity stock was in record high territory ahead of the earnings report.

The San Francisco-based company lost an adjusted 6 cents a share on sales of $286.3 million in the September quarter. Analysts expected Unity to lose 7 cents a share on sales of $266.5 million, according to FactSet. In the year-earlier period, Unity lost 9 cents a share on sales of $200.8 million.

In other news, Unity announced the acquisition of visual effects studio Weta Digital.

Unity describes itself as "the world's leading platform for creating and operating interactive, real-time 3D content." The company says its technology could provide a foundation for the coming metaverse.

Unity Stock Drops Late

In after-hours trading on the stock market today, Unity stock fell 9.2%, near 155.80. During the regular session Tuesday, Unity stock rose 5.2% to close at 171.63. Earlier in the regular session, it hit an all-time high of 177.45.

Earnings report details to follow.

On Aug. 11, Unity stock broke out of a cup-with-handle base at a buy point of 111.84, according to IBD MarketSmith charts. The breakout occurred after Unity delivered a beat-and-raise June-quarter report.

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