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Unity Software (U) to Post Q1 Earnings: What's in the Cards?

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Unity Software (U - Free Report) is set to report first-quarter 2022 results on May 10.

The company expects first-quarter revenues between $315 million and $320 million. The Zacks Consensus Estimate for revenues is pegged at $320.59 million, indicating an increase of 36.56% from the year-ago quarter’s reported figure.

The consensus mark for loss has remained unchanged at 8 cents per share in the past 30 days. Unity had reported a loss of 10 cents in the year-ago quarter.

Unity’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 32.14%, on average.
 

Unity Software Inc. Price and EPS Surprise

Unity Software Inc. Price and EPS Surprise

Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote

Let’s see how things have shaped up for the upcoming announcement:

 

Factors Likely to Influence Q1 Results

Unity’s first-quarter top line is expected to have benefited from robust demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers. Growing momentum in the Operate Solutions business is likely to have served as a key catalyst.

Unity has been expanding its platform by introducing new product capabilities, which is likely to have been a major growth driver.

Steady demand for interactive, real-time 2D and 3D content for mobile phones, tablets, PCs and virtual reality devices is likely to have aided the company’s top line.

The momentum is likely to have continued in the to-be-reported quarter, primarily on strong adoption of the company’s subscription-based Create Solutions and Operate Solutions.

Acquisitions like Parsec and SyncSketch, which enables cloud-based, secure collaboration between separated creators and artists, are expected to have driven top-line growth.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Unity has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Analog Devices (ADI - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2. The company is scheduled to release second-quarter fiscal 2022 results on May 18.

ADI’s shares have tumbled 11.2% year to date compared with the Zacks Computer and Technology sector’s decline of 23.9%.

BWX Technologies (BWXT - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #2. The company is set to report first-quarter 2022 results on May 9.

BWXT shares are up 5.1% year to date.

Cisco (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2. The company is scheduled to release third-quarter fiscal 2022 results on May 18.

Cisco’s shares are down 22.2% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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