Shares of Ubisoft (UBSFY (OTC:UBSFY)) popped nearly 16% in Paris after the video games developer reported Q3 net bookings above its forecast.
To be specific, the company posted net bookings of €626 million ($674 million) for the three months to the end of December, beating its guidance of €610 million.
Looking ahead, the group reiterated its financial targets for the full year of robust sales growth and non-IFRS operating income of roughly €400 million.
Moreover, it expects Q4 net bookings to be “sharply up” and on track to hit an annual record.
Yves Guillemot, Co-Founder and Chief Executive Officer, said
“Ubisoft recorded a solid third quarter, with net bookings slightly ahead of our expectations. This quarter provided us with positive momentum and marks the beginning of our turnaround to consistently creating and delivering high-quality, long-lasting games,” said Yves Guillemot, co-founder and CEO of Ubisoft.
In the wake of the report, analysts at Morgan Stanley reiterated its Equal Weight rating on Ubisoft’s stock.
“We see a large opportunity for Ubisoft as it attempts to pivot its business towards a higher quality business mix and a potentially attractive cost out story, but the recent track record is weak and the market is highly competitive, leaving us on the sidelines for now and we rate the shares Equal-weight,” they said.