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Skillz (SKLZ) Gears Up for Q1 Earnings: What's in Store?

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Skillz Inc. (SKLZ - Free Report) is scheduled to report first-quarter 2023 results on May 9, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 7.7%.

Q1 Estimates

The Zacks Consensus Estimate is pegged at a loss per share of 7 cents, unchanged over the past 30 days. In the prior-year quarter, SKLZ had incurred an adjusted loss of 18 cents. The consensus mark for revenues is pegged at $45.9 million, suggesting a decline of 50.9% year over year.

Factors to Note

SKLZ’s first-quarter performance is likely to have hurt by dismal monthly active users and paying monthly active users.  Also, increasing costs and expenses are likely to have affected margins in the to-be-reported quarter. Precisely, Identifier for Advertisers disruption and higher user acquisition spending levels to attract new users may have weighed on its to-be-reported quarter's bottom line.

On the flip side, the company is likely to have benefited from solid development on its product efforts, which includes additional features designed to lessen player friction and a new SDK to drive added UA efficiency.

Skillz Inc. Price and EPS Surprise 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. 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. That is not the case here.

Earnings ESP: Earnings ESP for Skillz is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Skillz currently flaunts a Zacks Rank #1.

Stocks Worth a Look

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this season.

Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +105.69% and  carries a Zacks Rank #2.

Shares of Wynn Resorts have gained 58% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.

DISH Network Corporation (DISH - Free Report) has an Earnings ESP of +21.55% and a Zacks Rank #3.

Shares of DISH Network have declined 58.4% in the past year. DISH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 63.4%.

Playa Hotels & Resorts N.V. (PLYA - Free Report) has an Earnings ESP of +40.22% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Playa Hotels & Resorts have increased 0.8% in the past year. PLYA’s earnings beat estimates in each of the trailing four quarters, the average surprise being 419.4%.

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

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