Friday, May 24, 2024

BlackSky Technology Inc. (BKSY) Earnings Report: Will It Disappoint Next Week? What Investors Need to Know

BlackSky Technology Inc. (BKSY) is set to release its earnings report for the quarter ended March 2024 next week. Analysts anticipate a year-over-year increase in earnings and higher revenues. However, recent estimate revisions and the company’s earnings history indicate a potential negative surprise. Here’s what investors should know.

Investors are eagerly awaiting BlackSky Technology Inc.’s (BKSY) earnings report, scheduled for release on May 8. Analysts are anticipating a year-over-year increase in earnings, alongside higher revenues. However, recent estimate revisions suggest a potential downturn. The Zacks Consensus Estimate for the quarter expects the company to post a loss of $0.08 per share, representing a significant year-over-year change of +42.9%. Despite an anticipated revenue increase of 36% to $25.02 million, recent estimate revisions indicate a downward trend.

Analysts have revised their EPS estimate downwards by 9.04% over the last 30 days. While this may not fully reflect the individual analysts’ revisions, it indicates a collective reassessment of the company’s performance.

The Zacks Earnings ESP (Expected Surprise Prediction) suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in a negative Earnings ESP of -0.62%. Although BlackSky Technology holds a Zacks Rank of #3, indicating a Hold rating, the combination of negative earnings forecast and Earnings ESP makes it difficult to predict an earnings beat.

BlackSky Technology has a mixed earnings surprise history. While it surpassed consensus EPS estimates in the last reported quarter with a surprise of +44.44%, it has only beaten estimates once in the last four quarters.

It’s important to note that an earnings beat or miss may not solely dictate the stock’s movement. Other factors also influence investor sentiment. Nevertheless, stocks that beat earnings expectations often see positive price movements. Therefore, it’s essential for investors to assess not only the earnings forecast but also other relevant factors before making investment decisions.

Investors can utilize the Zacks Earnings ESP Filter to identify potential stocks to buy or sell before their earnings reports. While BlackSky Technology Inc. (BKSY) doesn’t appear to be a strong earnings-beat candidate, it’s crucial for investors to consider various factors before making any decisions ahead of its earnings release.

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