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Gaia (GAIA) to Report Q1 Earnings: What's in the Cards?

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Gaia (GAIA - Free Report) is set to report first-quarter 2020 results on Apr 27.

The Zacks Consensus Estimate for first-quarter loss has stayed at 16 cents per share over the past 30 days. Gaia reported loss of 36 cents per share in the year-ago quarter.

The consensus mark for revenues is pegged at $15.1 million, indicating an increase of 20.8% from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 20.7%.
 

Gaia, Inc. Price and EPS Surprise

Gaia, Inc. Price and EPS Surprise

Gaia, Inc. price-eps-surprise | Gaia, Inc. Quote

 

Let’s see how things are shaping up for the upcoming announcement.

Factors to Note

Gaia’s first-quarter 2020 results are expected to reflect benefits from increased subscriber base. Introduction of the one-week free trial offer for potential new members is expected to have been a key factor in raising awareness about the company’s platform.

Moreover, increased traffic as more and more people remained at home due to lockdowns and movement restrictions related to the coronavirus pandemic from mid-March onward is likely to have aided user conversion.

Further, improved engagement trend, particularly with Gaia’s yoga channel, is likely to have been a key catalyst. Notably, the company added three new yoga experts to its platform in February to drive its offerings.

Additionally, Gaia’s subscriber acquisition cost is expected to have declined in the to-be-reported quarter owing to increased existing member sharing activity. Additionally, the drop in online ad spending budget by leading advertisers lowered ad-rates, thereby helping companies like Gaia to buy more ad-space at much lower prices.

Markedly, the company spent 50% of its revenues on member acquisition costs in fourth-quarter 2019. The lower ad-rates are expected to have helped Gaia reach more users with the same amount of advertising spending in the first quarter.

What Our Model Says

Per 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.

Gaia has an Earnings ESP of 0.00% and a Zacks Rank of 1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Pixelworks (PXLW - Free Report) has an Earnings ESP of +5.26% and is Zacks #1 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

InterDigital (IDCC - Free Report) has an Earnings ESP of +152.00% and is #1 Ranked.

Vista Outdoor (VSTO - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #1.



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