Skillsoft Corp. (SKIL) Reports Q1 Loss, Lags Revenue Estimates

Company Performance - Skillsoft Corp. reported a quarterly loss of $3.42 per share, which is better than the Zacks Consensus Estimate of a loss of $4, and an improvement from a loss of $3.60 per share a year ago [1] - The company posted revenues of $127.79 million for the quarter ended April 2024, missing the Zacks Consensus Estimate by 4.22%, and down from $135.55 million in the same quarter last year [10] - Skillsoft has surpassed consensus EPS estimates four times over the last four quarters, but has only topped consensus revenue estimates once during the same period [10] Stock Outlook - The current estimate revisions trend for Skillsoft is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [8] - The consensus EPS estimate for the upcoming quarter is -$3.69 on revenues of $136.71 million, and for the current fiscal year, it is -$13.23 on revenues of $545.27 million [13] - Skillsoft shares have declined approximately 47.8% since the beginning of the year, contrasting with the S&P 500's gain of 12.1% [11] Industry Context - The Technology Services industry, to which Skillsoft belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [4] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [3]