Skillz Inc. SKLZ is scheduled to report fourth-quarter 2024 results on March 13, after the closing bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 22.5%.
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SKLZ’S Q4 Estimates
For the quarter to be reported, the Zacks Consensus Estimate for the bottom line is pegged at a loss per share of $1.07, unchanged in the past 60 days. In the prior-year quarter, the company had reported an adjusted loss per share of $1.04. The consensus mark for revenues is pinned at $25.4 million, indicating a decline of 12.8% year over year.
Factors to Note Ahead of SKLZ’s Q4 Results
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. Skillz operates in a consumer discretionary sector where softening economic conditions might further pressure spending on its platform.
Rising costs and expenses are likely to have pressured margins in the upcoming earnings report. Specifically, disruptions related to Identifier for Advertisers and elevated user acquisition spending to attract new customers might impact the bottom line.
On the positive side, the company’s emphasis on its four strategic pillars—strengthening the platform, optimizing organizational structure, enhancing go-to-market efficiency and establishing a clear path to profitability—is expected to have supported performance.
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 both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see.
Earnings ESP: The 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: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. RCL posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. Notably, both top and bottom lines increased on a year-over-year basis.
The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. RCL’s diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.
Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.
Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.
Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. Both metrics declined on a year-over-year basis.
The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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