Visual content marketplace Getty Images (NYSE: GETY) will be reporting earnings tomorrow after market close. Here’s what to look for.
Getty Images beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $247.3 million, up 9.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
Is Getty Images a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Getty Images’s revenue to grow 5.7% year on year to $235 million, a reversal from the 5.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Getty Images has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Getty Images’s peers in the digital media & content platforms segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vimeo’s revenues decreased 1.8% year on year, beating analysts’ expectations by 1.6%, and Stride reported revenues up 17.8%, topping estimates by 3.6%. Vimeo traded down 10.1% following the results while Stride’s stock price was unchanged.
Read our full analysis of Vimeo’s results here and Stride’s results here.
There has been positive sentiment among investors in the digital media & content platforms segment, with share prices up 9.1% on average over the last month. Getty Images is up 17.4% during the same time and is heading into earnings with an average analyst price target of $4.88 (compared to the current share price of $1.89).
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