Mobile game developer Skillz (NYSE:SKLZ) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Skillz missed analysts’ revenue expectations by 7.9% last quarter, reporting revenues of $24.56 million, down 32.6% year on year. It was a disappointing quarter for the company, with a decline in its users and a significant miss of analysts’ number of paying monthly active users estimates. It reported 121,000 monthly active users, down 28% year on year.
Is Skillz a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Skillz’s revenue to decline 14.1% year on year to $25.04 million, improving from the 37.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Skillz’s peers in the video gaming segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Electronic Arts’s revenues decreased 3.2% year on year, missing analysts’ expectations by 4.6%, and Take-Two reported flat revenue, falling short of estimates by 2.1%. Electronic Arts traded up 7.6% following the results while Take-Two was also up 14%.
Read our full analysis of Electronic Arts’s results here and Take-Two’s results here.
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.