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Unity Software (U) to Post Q3 Earnings: What's in the Cards?
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Unity Software (U - Free Report) is set to report third-quarter 2022 results on Nov 9.
The company expects third-quarter revenues between $315 million and $335 million. The Zacks Consensus Estimate for revenues is pegged at $323.33 million, indicating an increase of 12.92% from the year-ago quarter’s reported figure.
The consensus mark for loss has become wider by 1 cent per share to 14 cents in the past 30 days.
Unity’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while matching the same twice, delivering an earnings surprise of 9.64%, on average.
Unity’s third-quarter top line is expected to have benefited from steady demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers.
The strong adoption of the company’s subscription-based Create Solutions and Operate Solutions is likely to have driven the momentum.
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.
Acquisitions like Parsec and SyncSketch, which enables cloud-based, secure collaboration between separated creators and artists, are expected to have driven top-line growth.
Key Developments in Q3
On Jul 13, the company announced a definitive agreement to merge with ironSource , which is expected to close in the fourth quarter of 2022. Following the merger, Unity’s game engine, ad platform and gaming services will merge with IronSource’s mediation, publishing and monetization solutions.
In addition to the deal, Unity also cut its full-year revenue outlook. The company now expects sales for the year to be between $1.3 billion and $1.35 billion, compared to its earlier estimate of sales in the range of $1.35-$1.42 billion.
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 . 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 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:
Image: Bigstock
Unity Software (U) to Post Q3 Earnings: What's in the Cards?
Unity Software (U - Free Report) is set to report third-quarter 2022 results on Nov 9.
The company expects third-quarter revenues between $315 million and $335 million. The Zacks Consensus Estimate for revenues is pegged at $323.33 million, indicating an increase of 12.92% from the year-ago quarter’s reported figure.
The consensus mark for loss has become wider by 1 cent per share to 14 cents in the past 30 days.
Unity’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while matching the same twice, delivering an earnings surprise of 9.64%, on average.
Unity Software Inc. Price and EPS Surprise
Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote
Factors Likely to Influence Q3 Results
Unity’s third-quarter top line is expected to have benefited from steady demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers.
The strong adoption of the company’s subscription-based Create Solutions and Operate Solutions is likely to have driven the momentum.
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.
Acquisitions like Parsec and SyncSketch, which enables cloud-based, secure collaboration between separated creators and artists, are expected to have driven top-line growth.
Key Developments in Q3
On Jul 13, the company announced a definitive agreement to merge with ironSource , which is expected to close in the fourth quarter of 2022. Following the merger, Unity’s game engine, ad platform and gaming services will merge with IronSource’s mediation, publishing and monetization solutions.
In addition to the deal, Unity also cut its full-year revenue outlook. The company now expects sales for the year to be between $1.3 billion and $1.35 billion, compared to its earlier estimate of sales in the range of $1.35-$1.42 billion.
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 . 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 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:
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TME shares have lost 45.2% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 37.7%.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 at present.
TTD shares have lost 44.7% in the year-to-date period compared with the Zacks Internet - Services industry’s decline of 43%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.