Earnings Preview: Skillz Inc. (SKLZ) Q2 Earnings Expected to Decline

Core Viewpoint - Skillz Inc. (SKLZ) is anticipated to report a year-over-year decline in earnings due to lower revenues, with a consensus estimate indicating a quarterly loss of $1.34 per share, reflecting a -135.1% change from the previous year, and revenues expected to be $22.8 million, down 9.9% year-over-year [1][3]. Earnings Expectations - The stock may experience upward movement if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 13.84% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Skillz is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -14.18%, which complicates the prediction of an earnings beat [11]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [9]. Historical Performance - In the last reported quarter, Skillz was expected to post a loss of $1.09 per share but actually reported a loss of -$0.92, resulting in a positive surprise of +15.60% [12]. - Over the past four quarters, Skillz has beaten consensus EPS estimates twice [13]. Industry Context - In comparison, DraftKings (DKNG) is expected to report earnings of $0.41 per share for the same quarter, indicating a year-over-year increase of +241.7%, with revenues projected at $1.42 billion, up 28.3% from the previous year [17]. - DraftKings has also seen a significant revision in its EPS estimate, down 133.8% over the last 30 days, and currently holds an Earnings ESP of -10.3% [18].