Unity Software Q2 Results Preview: Low Expectations

Unity Software (NYSE:U) plans to report its second-quarter earnings on Thursday, August 8, after the market close.

Wall Street analysts are expecting both revenue and net profit to decline year-over-year, with earnings per share coming in at $0.14 on revenue of $441.74 million.

Seeking Alpha analyst The Alpha Sieve believes the San Francisco, California-based company should present a promising future outlook that could help curb the ongoing negative sentiment towards the stock.

“This event has the potential to be even more significant as it will mark the debut of new CEO Matthew Bromberg and provide him with an opportunity to address and resolve issues with the company’s operations,” he added.

In its first-quarter report, the company said its earnings missed expectations, coming in at $460 million, while earnings per share came in at $0.75, a loss for both parties.

The video game software maker previously named former Zynga and Electronic Arts (EA) executive Matthew Bromberg as CEO, a move that will take effect May 15, following the company’s first-quarter earnings report.

The company has seen significant estimate cuts over the past three months. Earnings per share estimates have been revised down 7 times versus 2 moves up, while revenue estimates have seen 7 moves down versus 7 moves up.

Seeking Alpha and Wall Street analysts consider U a Hold. This is comparable to Quant Seeking Alpha’s ratings, which give the stock a Sell rating.