Gravity Co., LTD. (ADR) (NASDAQ: GRVY)
Gravity is having an incredible day in the market today, and for good reason. The company reported its results for the third quarter. While earnings was a bit disappointing, revenue far outweighed concerns. Below, we’ll talk about what we saw from earnings, what we’re seeing from the stock, and what we can expect to see from GRVY moving forward.
GRVY Reports Strong Q3 Results
As mentioned above, Gravity is defying gravity today after reporting strong Q3 results. Here’s what we saw from the report…
- Earnings Per Share – In terms of earnings per share, GRVY did release troubling results. During the quarter, the company reported a loss of KRW462.00. This is a large decline year over year from earnings of KRW888.00.
- Revenue – While earnings proved to be somewhat concerning. Investors cheered revenue. During the third quarter, the company reported revenue in the amount of KRW15.75 billion. This is incredibly strong growth over the KRW8.67billion reported in the same quarter last year.
How The Stock Reacted To The News
As investors, we know that the news moves the market; especially earnings news. With such strong growth in revenue, it only makes sense that the stock is seeing strong gains today. Currently (11:20), GRVY is trading at $11.75 per share after a gain of $7.20 per share or 158.22% thus far today.
What We Can Expect To See Ahead
First and foremost, in the short term, I am expecting to see a slight correction on Gravity stock from recent highs. At the end of the day, the growth we’re seeing right now far outweighs the results. Nonetheless, in the long run, the view is pretty positive. With incredibly high speed increases in revenue, investors are likely to be happy with GRVY for some time.
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