PowerSchool Holdings (PWSC) Q2 Earnings and Revenues Miss Estimates

Group 1: Earnings Performance - PowerSchool Holdings reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, which is unchanged from the previous year [1] - The earnings surprise for this quarter was -4.17%, and the company had a prior quarter surprise of -22.73% with actual earnings of $0.17 compared to an expected $0.22 [2] - Over the last four quarters, PowerSchool has surpassed consensus EPS estimates only once [2] Group 2: Revenue Performance - The company posted revenues of $191.59 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 1.95%, compared to $173.9 million in the same quarter last year [3] - PowerSchool has exceeded consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - PowerSchool shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has gained 11.5% [4] - The company's earnings outlook is mixed, and the current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $202.26 million, with an annual estimate of $0.90 on revenues of $789.57 million [8] Group 4: Industry Context - The Schools industry, to which PowerSchool belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, Afya, is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year increase of 27.6% [10]