Digital casino game platform PlayStudios (NASDAQ:MYPS) will be announcing earnings results this Monday after market hours. Here’s what you need to know.
PlayStudios missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $62.71 million, down 19.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ daily active users estimates. It reported 2.63 million monthly active users, down 24.7% 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 15.9% year on year to $61.07 million, a further deceleration from the 6.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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. PlayStudios has missed Wall Street’s revenue estimates five times over the last two years.
Looking at PlayStudios’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 22.2%, beating analysts’ expectations by 7.6%, and Churchill Downs reported revenues up 4.9%, topping estimates by 1.4%. Rush Street Interactive traded up 25.7% following the results while Churchill Downs was also up 4.1%.
Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. PlayStudios is down 10.7% during the same time and is heading into earnings with an average analyst price target of $2.88 (compared to the current share price of $1.09).
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