Digital Turbine beat Wall Street's sales and earnings estimates for fiscal Q4.
The company also issued sales guidance for the current fiscal year that was significantly stronger than expected.
Digital Turbine (NASDAQ: APPS) stock is soaring in Wednesday's trading. The company's share price was up 53.3% as of 11:15 a.m. ET and had been up as much as 57% earlier in the session.
After the market closed yesterday, Digital Turbine released results for the fourth quarter of its 2026 fiscal year -- a period that ended March 30. The quarter's sales and earnings exceeded Wall Street's estimates, and the company issued promising forward guidance.
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Digital Turbine recorded non-GAAP (adjusted) earnings of $0.16 per share and revenue of $142.5 million in the last fiscal year's fourth quarter. The performance came in far better than the average Wall Street analyst estimates, which had called for adjusted earnings of $0.09 per share and sales of roughly $133.2 million in the period. Revenue increased roughly 19.6% year over year to significantly exceed Wall Street's target, and margins for the period were stronger than anticipated.
With its latest quarterly report, Digital Turbine set guidance for sales between $630 million and $650 million for the current fiscal year. For comparison, the average analyst estimate had targeted revenue of roughly $619 million prior to the company's update.
Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year are projected to be between $135 million and $145 million -- up from $122.5 million last year. With growth looking significantly stronger than previously anticipated, investors have become far more confident in the company's long-term outlook.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.