Earnings To Watch: SciPlay (SCPL) Reports Q1 Results Tomorrow

Anthony Lee /
2023/05/08 4:48 am EDT

Digital casino game developer SciPlay (NASDAQ:SCPL) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter SciPlay reported revenues of $182.1 million, up 17.9% year on year, beating analyst revenue expectations by 2.23%. It was a solid quarter for the company, with growing number of users and a decent beat of analyst estimates. The company reported 0.6 million paying users, up 20% year on year.

Is SciPlay buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting SciPlay's revenue to grow 13.3% year on year to $179 million, improving on the 4.57% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

SciPlay Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at SciPlay's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Skillz's revenues decreased 59.3% year on year, missing analyst estimates by 12.4% and Coursera reported revenues up 22.6% year on year, exceeding estimates by 6.39%. Skillz traded down 4.06% on the results, Coursera was up flat on the results. Read our full analysis of Skillz's results here and Coursera's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.9% over the last month. SciPlay is down 2.57% during the same time, and is heading into the earnings with analyst price target of $18.3, compared to share price of $16.69.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.