Latest news with #SkillsoftCorp
Yahoo
02-06-2025
- Business
- Yahoo
Skillsoft Corp. (SKIL) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release
The market expects Skillsoft Corp. (SKIL) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. 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 Investment Research
Yahoo
18-04-2025
- Business
- Yahoo
Skillsoft (SKIL): AI Coach CAISY Hits 1M Launches, FY2026 Revenue Set for Growth
We recently published a list of . In this article, we are going to take a look at where Skillsoft Corp. (NYSE:SKIL) stands against other top AI news moving the market today. Investors continue to pour back into Big Tech stocks after the US government announced temporary tariff relief. For many, this is a signal that the technology sector may not suffer much, and further relief could follow. This is moving the major tech stocks and, with it, the index. The S&P and Nasdaq indices are both up over 4% in the last five trading sessions. Apart from the tariff developments, some companies are moving based on company-specific news as tech players continue to race ahead in the race for AI supremacy. Some of these companies are surging considerably and still have ample room to go, so you need to look at these developments before the market prices them in. To come up with our list of top 5 AI news you may have missed, we carefully considered the recent news reports and press releases while ordering the list based on hedge fund sentiment. School children in a classroom using digital learning services to access educational content. Number of Hedge Fund Holders: 11 Skillsoft Corp. offers a global platform for instructor-led training services. The company has two main segments: Instructor-Led Training and Content & Platform. It is known for the Percipio platform, which is an AI-powered learning platform that delivers learning through SaaS solutions. The firm has just announced its earnings report, and its AI initiatives are starting to gain investor attention. According to the management, SKIL is set for growth in 2026 after successfully implementing its transformation strategy. The firm's CAISY AI-powered coach is already gaining traction with over 1 million launches so far. SKIL is now integrating it with customer feedback and planning a rollout in the latter half of this fiscal year. Similar measures have been taken at the integration level, allowing integration with platforms like Oracle, Docebo, and SAP Talent Intelligence Hub. This is also expanding SKIL's ecosystem, which would eventually help it down the road. FY2026 revenue is expected to come in between $530 million and $545 million. This is welcome news for investors as the YoY decline in Q4 revenue had some worried about the company's topline. Free Cash Flow has nearly doubled in a year to $13.2 million, and the management is confident it will land somewhere between $13 million and $18 million in FY2026. Overall, SKIL ranks 4th on our list of top AI news moving the market today. While we acknowledge the potential of SKIL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SKIL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Skillsoft Corp (SKIL) Q4 2025 Earnings Call Highlights: Navigating Challenges and Seizing ...
Total Revenue: $133.8 million in Q4, down 2.8% year over year; $531 million for the full year, down 4% year over year. Talent Development Solutions (TDS) Revenue: $102.8 million in Q4, up 1% year over year; $405.5 million for the full year, flat compared to FY24. Global Knowledge Revenue: $30.9 million in Q4, down 13% year over year; $125.4 million for the full year, down 15% year over year. Adjusted EBITDA: $29.9 million in Q4, 22% of revenue; $109.1 million for the full year, 21% of revenue. GAAP Net Loss: $31.1 million in Q4; $121.9 million for the full year. Adjusted Net Income: $17 million in Q4; $35 million for the full year. Free Cash Flow: $13.2 million in Q4; $11.6 million for the full year. Dollar Retention Rate (DRR): 105% in Q4; 100% for the full year FY25. Cost of Revenue: $33.3 million in Q4, 25% of revenue; $133.8 million for the full year, 25% of revenue. Cash and Cash Equivalents: $103 million at the end of Q4. Total Gross Debt: $581 million at the end of Q4. FY26 Revenue Guidance: $530 million to $545 million. FY26 Adjusted EBITDA Guidance: $112 million to $118 million. FY26 Free Cash Flow Guidance: $13 million to $18 million. Warning! GuruFocus has detected 4 Warning Signs with SKIL. Release Date: April 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Skillsoft Corp (NYSE:SKIL) delivered solid fourth-quarter and fiscal-year results, with revenue exceeding the high end of guidance and adjusted EBITDA at the upper end of the range. The company achieved a dollar retention rate (DRR) of 105% in the fourth quarter, bringing the last 12 months DRR to 100%, meeting expectations. Skillsoft Corp (NYSE:SKIL) is focusing on transforming its go-to-market strategy and product offerings, targeting the enterprise market segment for growth. The company has made significant progress in its transformation strategy, achieving $45 million in annualized expense reduction, with a portion reinvested into the business. Skillsoft Corp (NYSE:SKIL) is well-positioned in a large and growing market, estimated at over $400 billion, with differentiated offerings in global skills development and AI-powered learning experiences. Global Knowledge revenue declined by 13% year over year in the fourth quarter and 15% for the full year, indicating challenges in this business unit. Total revenue for the fourth quarter was down approximately 2.8% year over year, and full-year revenue was down 4%, reflecting ongoing revenue challenges. The company faces macroeconomic uncertainties, including potential impacts from evolving government policies, which could affect future performance. Despite improvements, the Global Knowledge business unit still faces margin challenges due to varying margins between tech partners and the mix of trainers used. Skillsoft Corp (NYSE:SKIL) is in the early stages of its transformation journey, with ongoing efforts needed to fully realize the benefits of its strategic initiatives. Q: Can you provide insights into how the recent tariff news is impacting Skillsoft's business, particularly in terms of customer reactions and market segments? A: Ronald Hovsepian, CEO, explained that as a federal contractor, Skillsoft is directly involved with the federal government and has not seen any material impact from the tariffs. Customers are reacting in three ways: some want to continue receiving materials, others are complying with regulations even if not directly affected, and some are adopting a wait-and-see approach. Skillsoft is well-prepared to handle these scenarios, but the overall uncertainty could affect decision-making over time. Q: How does the FY26 growth outlook account for potential impacts from the current uncertain environment? A: Richard Walker, CFO, stated that the FY26 outlook reflects the current business environment without assuming any significant impact from uncertainties. The company acknowledges the fluid situation and will adjust if necessary, but the current guidance is based on the business as it stands. Q: Why does the EBITDA guidance for FY26 not show significant margin expansion despite revenue growth? A: Richard Walker explained that while there is modest margin expansion, the focus is on reinvesting in growth. The company is prioritizing strategic investments to drive future growth rather than immediate margin expansion. The reinvestment is expected to yield better profitability in the latter half of FY26. Q: Can you elaborate on the progress and impact of the go-to-market transformation and large deal activity? A: Ronald Hovsepian highlighted that the company is seeing positive results from its go-to-market transformation, with significant large deal activity, including $22 million in total contract value from the top 10 deals in the Talent Development Solutions segment. The focus is on enhancing enterprise sales capabilities and leveraging subject matter expertise to drive growth. Q: What is the engagement level and potential monetization of the CAISY AI simulator among test customers? A: Ronald Hovsepian noted strong engagement from the 100 test customers, with many using the simulator for customer-facing revenue activities. About a third of these customers engaged Skillsoft's professional services, indicating high interest and potential for monetization through cross-sell and upsell opportunities. The company is working on packaging and pricing strategies for broader rollout. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
