Digital casino game platform PlayStudios (NASDAQ: MYPS) will be reporting results tomorrow after market hours. Here’s what investors should know.
PlayStudios missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $67.78 million, down 12.1% year on year. It was a disappointing quarter for the company, with a miss of analysts’ daily active users estimates and full-year revenue guidance missing analysts’ expectations significantly. It reported 2.72 million monthly active users, down 19% year on year.
Is PlayStudios a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PlayStudios’s revenue to decline 18.2% year on year to $63.63 million, a further deceleration from the 2.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PlayStudios has missed Wall Street’s revenue estimates four times over the last two years.
Looking at PlayStudios’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 20.7%, beating analysts’ expectations by 0.5%, and Churchill Downs reported revenues up 8.7%, in line with consensus estimates. Rush Street Interactive traded down 5.4% following the results while Churchill Downs was also down 16.3%.
Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 8.8% on average over the last month. PlayStudios is up 3.7% during the same time and is heading into earnings with an average analyst price target of $2.83 (compared to the current share price of $1.39).
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