Earnings To Watch: Unity (U) Reports Q2 Results Tomorrow

Adam Hejl /
2023/08/01 4:02 am EDT

Game engine maker Unity (NYSE:U) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Unity reported revenues of $500.4 million, up 56.3% year on year, beating analyst revenue expectations by 4.28%. It was a solid quarter for the company, with a decent beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter.

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

This quarter analysts are expecting Unity's revenue to grow 74.1% year on year to $517.1 million, improving on the 8.58% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Unity 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 three times over the last two years.

Looking at Unity's peers in the vertical software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Cadence delivered top-line growth of 13.9% year on year, missing analyst estimates by 0.08%,  and PTC reported revenues up 17.3% year on year, exceeding estimates by 3.41%. Cadence traded down 4.6% on the results, and PTC was flat on the results. Read our full analysis of Cadence's results here and PTC's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 9.07% over the last month. Unity is up 5.91% during the same time, and is heading into the earnings with analysts' average price target of $40.70, compared to share price of $46.18.

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