Interactive software platform Unity (NYSE: U) will be reporting earnings this Thursday before market hours. Here’s what to expect.
Unity beat analysts’ revenue expectations last quarter, reporting revenues of $503.1 million, up 10.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Unity a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Unity’s revenue to grow 15.8% year on year, a reversal from the 5.5% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Unity has a history of exceeding Wall Street’s expectations.
Looking at Unity’s peers in the design software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Procore Technologies delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 1.9%, and Cadence Design Systems reported revenues up 18.7%, topping estimates by 1.9%. Cadence Design Systems traded down 3.3% following the results.
Read our full analysis of Procore Technologies’s results here and Cadence Design Systems’s results here.
There has been positive sentiment among investors in the design software segment, with share prices up 12.4% on average over the last month. Unity is up 24.4% during the same time and is heading into earnings with an average analyst price target of $31.97 (compared to the current share price of $27.37).
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