Earnings Preview: Udemy, Inc. (UDMY) Q4 Earnings Expected to Decline

Core Viewpoint - The market anticipates a year-over-year decline in Udemy, Inc.'s earnings due to lower revenues, with a focus on how actual results will compare to these estimates [1][2]. Earnings Expectations - Udemy is expected to report quarterly earnings of $0.09 per share, reflecting a year-over-year decrease of 10% [3]. - Revenues are projected to be $193.21 million, down 3.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 366.67% over the last 30 days, indicating a significant reassessment by analysts [4]. - The Most Accurate Estimate for Udemy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -36.17% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Udemy's current Zacks Rank is 3, which complicates predictions regarding an earnings beat [12]. Historical Performance - In the last reported quarter, Udemy exceeded earnings expectations by delivering $0.13 per share against an expected $0.10, resulting in a surprise of +30.00% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - eGain, another player in the Zacks Internet - Software industry, is expected to report earnings of $0.08 per share for the same quarter, indicating a year-over-year increase of 100% [18]. - eGain's consensus EPS estimate has remained unchanged, resulting in an Earnings ESP of 0.00%, making predictions about its performance similarly challenging [19].