Allied Esports Entertainment Inc. (AESE) stock became bullish after-market, gaining 15.71% at $2.21 on November 22. The stock went down by 6.37%, to close at $1.91 in the previous active trading session. Intraday trading, the stock saw a range of $1.91 to $2.08, at a volume of 2.72 million. Which was 293% more than the 65-day average volume of 929.41 thousand, while the after hours’ volume on Monday was 1.54 million. In the past five days, the stock lost a value of 10.75%, while it gained 11.70% in the past month. Moreover, the stock lost 1.04% in the previous three months, while gaining 92.91% year to date. The recent reversal in AESE’s downtrend happened after the company posted beat Q3 earnings.
Founded in 2018, Allied Esports Entertainment Inc. (AESE) is a premier public esports and entertainment company.
AESE Q3 Expectations
Previously, AESE’s negative expectations for the third-quarter earnings were the cause of the stock’s downfall. The consensus estimate expected a loss of $0.12 per share for the third quarter, with a revenue of $0.82 million. The loss per share estimates showed no improvement from the previous quarter, while the revenue estimate marked a decline by 86.1% year over year. These expectations had led the stock on a downtrend prior to the Q3 earnings announcement.
Moreover, the Q3 earnings were previously to be announced on November 15, but the company rescheduled it to November 22, 2021.
Third Quarter Financial Results
AESE announced its third-quarter financial results on November 22, 2021. As per the third quarter of 2021, the total revenues were $1.68 million, showing an increase of 182% year over year. The revenues for the third quarter of 2020, were $596,883. Hence, AESE beat the consensus estimate revenue by $0.86 million. The increase in revenue was due to the increased traffic at AESE’s HyperX Esports Arena Las Vegas. As the restrictions of timings were loosened and more events were held in the arena.
Moreover, the net income for Q3 2021, was $74.3 million, against a net loss of $6.5 million in that of 2020. Consequently, the net loss per basic and diluted share for Q3 2021, was $0.08, against $0.24 for Q3 2020. Hence, AESE also beat the consensus estimate net loss per share, giving a beat margin of $0.04. The increase in the total net income was basically due to the increased sales of the World Poker Tour (WPT).
