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Skillz (SKLZ) Gears Up to Report Q2 Earnings: What's in Store?
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Skillz Inc. (SKLZ - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, after market close. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate of 7.1%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has narrowed from 11 cents to 10 cents in the past 30 days. The consensus mark for revenues is pegged at $88.07 million.
Factors to Consider
Skillz’ increased paying monthly active users (MAU) and competitive advantage, owing to the company’s in-app purchases, are likely to have driven its second-quarter 2021 performance. Also, rise in company’s gross marketplace volume might have driven its performance in the to-be-reported quarter.
The company is consistently focused on international expansion and conversion of playing users into paying users. The recently-launched developer progression feature allows game developers to create in-game milestones for players. This is expected to have enhanced player retention and engagement in second-quarter 2021.
Furthermore, the company is witnessing extended android footprints that are growing faster than than iOS. This might have generated better revenue in second-quarter 2021.
However, rise in costs and expenses is likely to have affected margins in the to-be-reported quarter. During first-quarter 2020, total costs and expenses rose 53.6% year over year.
Our proven model does not conclusively predict an earnings beat for Skillz this time around. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Earnings ESP for Skillz is -3.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #1.
Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.24% and a Zacks Rank #3.
Accel Entertainment, Inc. (ACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.
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Skillz (SKLZ) Gears Up to Report Q2 Earnings: What's in Store?
Skillz Inc. (SKLZ - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, after market close. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate of 7.1%.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has narrowed from 11 cents to 10 cents in the past 30 days. The consensus mark for revenues is pegged at $88.07 million.
Factors to Consider
Skillz’ increased paying monthly active users (MAU) and competitive advantage, owing to the company’s in-app purchases, are likely to have driven its second-quarter 2021 performance. Also, rise in company’s gross marketplace volume might have driven its performance in the to-be-reported quarter.
The company is consistently focused on international expansion and conversion of playing users into paying users. The recently-launched developer progression feature allows game developers to create in-game milestones for players. This is expected to have enhanced player retention and engagement in second-quarter 2021.
Furthermore, the company is witnessing extended android footprints that are growing faster than than iOS. This might have generated better revenue in second-quarter 2021.
However, rise in costs and expenses is likely to have affected margins in the to-be-reported quarter. During first-quarter 2020, total costs and expenses rose 53.6% year over year.
Skillz Inc. Price and EPS Surprise
Skillz Inc. price-eps-surprise | Skillz Inc. Quote
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Skillz this time around. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Earnings ESP for Skillz is -3.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #1.
Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.24% and a Zacks Rank #3.
Accel Entertainment, Inc. (ACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.