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Skillz (SKLZ) to Report Q4 Earnings: What's in the Offing?
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Skillz Inc. (SKLZ - Free Report) is scheduled to report fourth-quarter 2023 results on Mar 14, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.5%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has narrowed from $1.49 to $1.46 in the past 30 days. In the prior-year quarter, SKLZ had incurred an adjusted loss of $2.4 per share.
The consensus mark for revenues is pegged at $39.2 million, suggesting a decline of 16.4% year over year.
Factors to Note
SKLZ’s fourth-quarter top line is likely to have been hurt by dismal monthly active users (MAU) and paying MAU and lower traffic levels. The company's focus on optimizing the platform over user acquisition is likely to have been affected by the paid user conversion rate, which is paying MAU divided by MAU.
Meanwhile, 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.
However, the company's focus on its four strategic pillars — enhancing the platform, upleveling the organization, improving go-to-market efficiency and demonstrating a clear path to profitability — is expected to have driven results.
For the fourth quarter, SKLZ anticipated launching two to three new features and aiming to extend the momentum into 2024.
Focusing on enhancing user economics, SKLZ aims to reduce customer acquisition costs while boosting lifetime value (LTV). This involves improving the product experience to drive higher engagement.
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.
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
PVH Corp. (PVH - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
PVH’s earnings for the to-be-reported quarter are expected to increase 46.6% year over year. Notably, the company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 18.9%.
Guess?, Inc. (GES - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #2.
GES is expected to register a 10.9% year-over-year decline in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 43.1%.
NIKE, Inc. (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank #3.
NKE’s earnings for the to-be-reported quarter are expected to decline 11.4% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 25%.
Image: Bigstock
Skillz (SKLZ) to Report Q4 Earnings: What's in the Offing?
Skillz Inc. (SKLZ - Free Report) is scheduled to report fourth-quarter 2023 results on Mar 14, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.5%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for loss per share has narrowed from $1.49 to $1.46 in the past 30 days. In the prior-year quarter, SKLZ had incurred an adjusted loss of $2.4 per share.
Skillz Inc. Price and EPS Surprise
Skillz Inc. price-eps-surprise | Skillz Inc. Quote
The consensus mark for revenues is pegged at $39.2 million, suggesting a decline of 16.4% year over year.
Factors to Note
SKLZ’s fourth-quarter top line is likely to have been hurt by dismal monthly active users (MAU) and paying MAU and lower traffic levels. The company's focus on optimizing the platform over user acquisition is likely to have been affected by the paid user conversion rate, which is paying MAU divided by MAU.
Meanwhile, 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.
However, the company's focus on its four strategic pillars — enhancing the platform, upleveling the organization, improving go-to-market efficiency and demonstrating a clear path to profitability — is expected to have driven results.
For the fourth quarter, SKLZ anticipated launching two to three new features and aiming to extend the momentum into 2024.
Focusing on enhancing user economics, SKLZ aims to reduce customer acquisition costs while boosting lifetime value (LTV). This involves improving the product experience to drive higher engagement.
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 carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
PVH Corp. (PVH - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
PVH’s earnings for the to-be-reported quarter are expected to increase 46.6% year over year. Notably, the company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 18.9%.
Guess?, Inc. (GES - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #2.
GES is expected to register a 10.9% year-over-year decline in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 43.1%.
NIKE, Inc. (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank #3.
NKE’s earnings for the to-be-reported quarter are expected to decline 11.4% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 25%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.