Stock Story -
Game engine maker Unity (NYSE:U) will be reporting results tomorrow afternoon. Here's what to expect.
Unity beat analysts' revenue expectations by 4.1% last quarter, reporting revenues of $609.3 million, up 35.1% year on year. It was a weak quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.
Is Unity a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Unity's revenue to decline 13.4% year on year to $433.5 million, a reversal from the 56.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 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. Unity has missed Wall Street's revenue estimates four times over the last two years.
Looking at Unity's peers in the design software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Procore Technologies (NYSE:PCOR) delivered year-on-year revenue growth of 26.2%, beating analysts' expectations by 2.5%, and Matterport (NASDAQ:MTTR) reported revenues up 4.9%, in line with consensus estimates. Procore Technologies traded up 1.4% following the results while Matterport's stock price was unchanged.
Read the full analysis of Procore Technologies's and Matterport's results on StockStory.
Growth stocks have been quite volatile since the start of 2024, and while some of the design software stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. Unity is down 6.4% during the same time and is heading into earnings with an average analyst price target of $30.1 (compared to the current share price of $25.35).
