Stock Story -
Mobile game developer Skillz (NYSE:SKLZ) will be reporting earnings tomorrow after market hours. Here's what to look for.
Skillz missed analysts' revenue expectations by 12.6% last quarter, reporting revenues of $25.24 million, down 43.1% year on year. It was a weak quarter for the company, with a decline in its users. It reported 121,000 monthly active users, down 43.5% year on year.
Is Skillz a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Skillz's revenue to decline 34.2% year on year to $26.43 million, improving from the 44% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.25 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Skillz's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Electronic Arts (NASDAQ:EA)'s revenues decreased 13.7% year on year, beating analysts' expectations by 5.3%, and Pinterest (NYSE:PINS) reported revenues up 20.6%, in line with consensus estimates.
Read the full analysis of Electronic Arts's and Pinterest's results on StockStory.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Skillz is down 6.1% during the same time and is heading into earnings with an average analyst price target of $9.5 (compared to the current share price of $6.46).
![Skillz (SKLZ) Q2 Earnings Report Preview: What To Look For](https://d68-invdn-com.investing.com/content/pic96985c46b75d23e93dfe808e5b43fe35.jpeg)