Unity Software U is set to report first-quarter 2024 results on May 9.
The company expects first-quarter revenues between $415 million and $420 million, indicating a decline of 15-16% year over year. The Zacks Consensus Estimate is pegged at $422.53 million, indicating a decrease of 15.55% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 5 cents per share, which has remained unchanged in the past 30 days.
Unity Software’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 69.43%.
Unity Software Inc. Price and EPS Surprise
Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote
Factors Likely to Influence Q1 Results
Unity Software is restructuring its portfolio to focus on core businesses only. This restructuring is expected to aid the long-term growth of the company. The decline of business operation verticals is likely to have affected top-line growth in the to-be-reported quarter.
In the fourth quarter, the company entered into some notable partnerships to better support game developers, as well as in-cabin car experience.
The company is also right sizing the cost structure to grow from a healthy financial position. This includes the previously announced reduction of approximately 25% of the workforce.
This includes a partnership with Valeo Racer, a new extended reality in-car gaming experience for passengers developed using Unity Software. The game integrates the vehicle's real surroundings, including buildings, roads and traffic, offering unique experiences and challenges every time. U has also announced a groundbreaking partnership with Mazda to pioneer a next-generation in-cabin car experience, promising a seamless journey for drivers.
The company has been expanding its platform by introducing relevant capabilities. This is likely to have been a major growth driver in customer engagement.
What Our Model Indicates
According to 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.
U has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. 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 stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
NVIDIA NVDA has an Earnings ESP of +2.50% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is scheduled to release first-quarter 2024 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, indicating growth of 403.67% from the year-ago quarter’s reported figure.
Arista Networks ANET has an Earnings ESP of +3.76% and carries a Zacks Rank #2 at present.
ANET is set to report first-quarter 2024 results on May 7. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.74 per share, indicating a rise of 21.68% from the year-ago quarter’s reported figure.
Docebo DCBO has an Earnings ESP of +8.00% and a Zacks Rank #3 at present.
Docebo is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 17 cents per share, indicating growth of 88.89% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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