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The company expects second-quarter revenues between $420 million and $425 million, indicating a decline of 6-7% year over year. The Zacks Consensus Estimate is pegged at $433.43 million, indicating a decrease of 18.76% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 44 cents per share, which has remained unchanged in the past 30 days.
Unity Software’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 64.43%.
Unity Software is restructuring its portfolio to focus on core businesses only. This restructuring is expected to aid the long-term growth of the company. The decline of business operation verticals is likely to have affected top-line growth in the to-be-reported quarter.
The company is also right sizing the cost structure to grow from a healthy financial position. This includes the previously announced reduction of approximately 25% of the workforce.
In the second quarter, the company released enhanced support to game developers by streamlining the entire development process via a suite of flexible and extensible tools.
This includes Unity Gaming Services, which has been used by studios like StickyLock and Triangle Factory to deliver exciting and engaging co-op and multiplayer experiences across multiple platforms. Additionally, Unity Software’s Multiplayer Hosting, leveraged by more than 400 studios worldwide, provides dedicated high-concurrency servers with 99.95% uptime. This is expected to have aided the company’s top-line growth in the to-be-reported quarter.
The company has been expanding its platform by introducing relevant capabilities. This is likely to have been a major growth driver in customer engagement.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
U has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Image: Bigstock
Unity Software (U) to Post Q2 Earnings: What's in the Cards?
Unity Software (U - Free Report) is set to report second-quarter 2024 results on Aug 8.
The company expects second-quarter revenues between $420 million and $425 million, indicating a decline of 6-7% year over year. The Zacks Consensus Estimate is pegged at $433.43 million, indicating a decrease of 18.76% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 44 cents per share, which has remained unchanged in the past 30 days.
Unity Software’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 64.43%.
Unity Software Inc. Price and EPS Surprise
Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote
Factors Likely to Influence Q2 Results
Unity Software is restructuring its portfolio to focus on core businesses only. This restructuring is expected to aid the long-term growth of the company. The decline of business operation verticals is likely to have affected top-line growth in the to-be-reported quarter.
The company is also right sizing the cost structure to grow from a healthy financial position. This includes the previously announced reduction of approximately 25% of the workforce.
In the second quarter, the company released enhanced support to game developers by streamlining the entire development process via a suite of flexible and extensible tools.
This includes Unity Gaming Services, which has been used by studios like StickyLock and Triangle Factory to deliver exciting and engaging co-op and multiplayer experiences across multiple platforms. Additionally, Unity Software’s Multiplayer Hosting, leveraged by more than 400 studios worldwide, provides dedicated high-concurrency servers with 99.95% uptime. This is expected to have aided the company’s top-line growth in the to-be-reported quarter.
The company has been expanding its platform by introducing relevant capabilities. This is likely to have been a major growth driver in customer engagement.
What Our Model Indicates
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
U has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify’s shares have plunged 30.1% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
DigitalOcean (DOCN - Free Report) has an Earnings ESP of +2.19% and flaunts a Zacks Rank of 1 at present.
DigitalOcean’s shares have lost 21.8% year to date. DOCN is set to report its second-quarter 2024 results on Aug 8.
MKSI (MKSI - Free Report) has an Earnings ESP of +7.28% and sports a Zacks Rank #1 at present.
MKSI’s shares have gained 3.6% year to date. MKSI is set to report second-quarter 2024 results on Aug 7.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.