Skillsoft Corp. (SKIL) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release
The earnings report, which is expected to be released on June 9, 2025, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
This company is expected to post quarterly loss of $2.65 per share in its upcoming report, which represents a year-over-year change of +22.5%.
Revenues are expected to be $123.5 million, down 3.4% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 10.51% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
For Skillsoft, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Skillsoft will beat the consensus EPS estimate.
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Skillsoft would post a loss of $2.05 per share when it actually produced earnings of $2.11, delivering a surprise of +202.93%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Skillsoft doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Skillsoft Corp. (SKIL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Coursera (COUR) Q2 Earnings and Revenues Beat Estimates
Coursera (COUR) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this online learning platform would post earnings of $0.08 per share when it actually produced earnings of $0.12, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Coursera, which belongs to the Zacks Technology Services industry, posted revenues of $187.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.38%. This compares to year-ago revenues of $170.34 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Coursera shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 8.1%. What's Next for Coursera? While Coursera has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Coursera was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $182.09 million in revenues for the coming quarter and $0.35 on $726.86 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Bitfarms Ltd. (BITF), is yet to report results for the quarter ended June 2025. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +85.7%. The consensus EPS estimate for the quarter has been revised 40% higher over the last 30 days to the current level. Bitfarms Ltd.'s revenues are expected to be $81.84 million, up 97% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coursera, Inc. (COUR) : Free Stock Analysis Report Bitfarms Ltd. (BITF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 hours ago
- Yahoo
Is Dana (DAN) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?
Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Dana (DAN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question. Dana is a member of our Auto-Tires-Trucks group, which includes 96 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Dana is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for DAN's full-year earnings has moved 9.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Our latest available data shows that DAN has returned about 41.4% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have lost an average of 13%. This means that Dana is performing better than its sector in terms of year-to-date returns. OPENLANE (KAR) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.9%. Over the past three months, OPENLANE's consensus EPS estimate for the current year has increased 3.1%. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Dana belongs to the Automotive - Original Equipment industry, a group that includes 50 individual companies and currently sits at #85 in the Zacks Industry Rank. On average, stocks in this group have gained 10.8% this year, meaning that DAN is performing better in terms of year-to-date returns. OPENLANE is also part of the same industry. Dana and OPENLANE could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN) : Free Stock Analysis Report OPENLANE, Inc. (KAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Yahoo
Should Investors Buy Microsoft Stock Ahead of Q4 Earnings Release?
Microsoft MSFT is slated to report fourth-quarter fiscal 2025 results on July Zacks Consensus Estimate for revenues is pegged at $73.71 billion, indicating growth of 13.88% from the figure reported in the year-ago consensus mark for earnings has remained steady at $3.35 per share over the past 30 days, suggesting 13.56% year-over-year growth. Image Source: Zacks Investment Research MSFT Earnings Surprise History In the last reported quarter, the company delivered an earnings surprise of 8.13%. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.21%. Microsoft Corporation Price and EPS Surprise Microsoft Corporation price-eps-surprise | Microsoft Corporation Quote Earnings Whispers for MSFT Our proven model does not conclusively predict an earnings beat for Microsoft this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP has an Earnings ESP of -0.64% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Factors Shaping MSFT's Upcoming Results Microsoft's upcoming fourth-quarter fiscal 2025 results are expected to demonstrate strong momentum across its core business segments, driven by continued AI infrastructure investments and robust cloud adoption. The company positioned itself well for solid quarterly performance through strategic platform expansions and key product launches during the period, thus making it an appealing pick for investors ahead of the upcoming Productivity and Business Processes, Microsoft projects revenues between $32.05 billion and $32.35 billion, with model estimates indicating 12.2% year-over-year growth to $32.1 is expected to have benefited from sustained Microsoft 365 Commercial cloud growth, with management guiding approximately 14% constant currency (cc) expansion. The segment capitalized on continued ARPU growth through E5 and Microsoft 365 Copilot adoption, while LinkedIn maintained steady performance despite hiring market headwinds. For LinkedIn, the company expects revenue growth in high single enhanced its competitive position through major Build 2025 conference announcements, including new agent capabilities and enterprise-grade AI tuning features rolled out during the Intelligent Cloud segment continues to remain the primary growth engine, with revenue projections between $28.75 billion and $29.05 billion. Our model estimate for this segment is pegged at $28.89 billion, indicating growth of 21.5% from the figure reported in the year-ago quarter. Azure remains the standout performer, with revenue growth projected between 34% and 35% in cc. Microsoft added more AI computing power ahead of schedule in the previous quarter, helping the company meet rising customer demand even with some supply limits continuing past June. The company's $80 billion spending plan for fiscal 2025 helped build more data centers worldwide, with most of the investment happening in the United Build 2025 developer conference showcased the company's comprehensive AI platform strategy, introducing multi-agent orchestration capabilities, enterprise-grade security features and expanded model partnerships. These initiatives reinforced Microsoft's leadership position in enterprise AI adoption and positioned the company well for sustained growth momentum into fiscal Enterprise Services, revenues are expected to grow in mid-to-high single digits. The company expects Server product revenues to decline in mid-single More Personal Computing, the company projects revenues between $12.35 billion and $12.85 billion. Our model estimate for this segment is pegged at $12.43 billion, indicating growth of 1% from the figure reported in the year-ago Personal Computing is expected to have shown resilience through successful product rollouts, including the deployment of Recall, Click to Do, and enhanced Windows Search features to all Copilot+ PCs during the to-be-reported quarter. The segment received a significant boost from the phenomenal success of A Minecraft Movie, which achieved record-breaking box office performance, exceeding $900 million globally and drove increased weekly active users for the gaming franchise by over 75% year over revenue performance appears contingent on improving PC demand trends. According to the preliminary results from the International Data Corporation Worldwide Quarterly Personal Computing Device Tracker, second-quarter 2025 worldwide PC shipments reached 68.4 million units, growing 6.5% year over year, though Microsoft expects Windows OEM revenues to decline in mid-to-high single digits. The competitive landscape shows mixed results, with Lenovo LNVGY and Hewlett Packard HPE achieving 15.2% and 3.2% shipment growth, respectively, while Dell Technologies DELL experienced a 3% Gaming, the company expects revenues to grow in mid-single digits. Microsoft expects Xbox content and services revenues to grow in high single digits. This moderate performance in consumer-facing segments contrasts with the stronger enterprise and cloud divisions. MSFT Price Performance & Stock Valuation Shares of MSFT have gained 21.2% in the year-to-date period compared with the broader Zacks Computer & Technology sector's increase of 10.8%. Shares of LNVGY and DELL have gained 2.3% and 11.4%, respectively while HPE has lost 3.9% in the same period. Year-to-date Performance Image Source: Zacks Investment Research Now, let's look at the value Microsoft offers investors at current levels. MSFT is trading at a premium with a forward 12-month P/S of 11.99X compared with the Zacks Computer - Software industry's 8.93X, reflecting a stretched valuation. MSFT's P/S F12M Ratio Depicts Stretched Valuation Image Source: Zacks Investment Research Investment Thesis Microsoft presents a compelling investment opportunity ahead of fourth-quarter fiscal 2025 earnings, with an estimated 13.88% revenue growth to $73.71 billion driven by robust AI infrastructure investments and cloud adoption. The company's strategic positioning in enterprise AI through comprehensive platform expansions and Azure's impressive 34-35% cc growth trajectory demonstrate sustainable competitive advantages. Despite premium valuation and intensifying competition, Microsoft's $80 billion investment in global data centers, successful AI integration across productivity suites and strong momentum in the Intelligent Cloud segment position the company for continued market leadership and long-term value creation for shareholders. Final Thoughts Microsoft's strong fundamentals, driven by AI leadership and cloud dominance, make it an attractive investment despite a premium valuation. With projected double-digit revenue growth, robust Azure expansion and strategic AI investments positioning the company for sustained market leadership, investors should consider buying the stock ahead of fiscal fourth-quarter earnings. The company's comprehensive AI platform strategy ensures long-term competitive advantages and value creation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
