Key Takeaways:
- Skillsoft reported Q1 EPS of $1.16, beating the $0.05 consensus by $1.11
- Revenue of $94.5M missed estimates of $123.5M, falling 21.95% short
- Shares rose 4.12% after hours on the massive earnings surprise
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Skillsoft beats Q1 earnings estimates by $1.11 per share despite revenue miss
Skillsoft Corp. reported Q1 earnings of $1.16 per share, beating the $0.05 consensus by $1.11 — a 2,220 percent surprise.
"The estimate revisions trend for Skillsoft was mixed," according to Zacks Investment Research, which rates the stock a Zacks Rank #3 (Hold).
Revenue fell to $94.5 million from $124.2 million a year earlier, missing the $123.5 million consensus by 21.95 percent. The company has topped consensus revenue estimates only once in the past four quarters, while beating on earnings three times over that same period. A year ago, Skillsoft reported earnings of $0.30 per share on revenue of $124.2 million. In the prior quarter, the company posted EPS of $1.26 against expectations of $1.27, a miss of 0.79 percent.
Shares rose 4.12 percent after the close, though the stock has lost about 25.5 percent year to date, compared with the S&P 500's 8.2 percent gain. The current consensus calls for EPS of $1.03 on $125.4 million in revenue in the coming quarter, with the full fiscal year expected to deliver $4.28 per share on $503.19 million in revenue.
Institutional investors showed mixed activity heading into the report. Zacks Investment Management added 187,434 shares in the first quarter, while Morgan Stanley reduced its stake by 24.6 percent, according to 13F filings. Jacobs Levy Equity Management exited its position entirely, and AQR Capital Management built a new stake of 136,253 shares.
The earnings beat shows that Skillsoft's cost discipline is delivering results even as top-line growth lags. Investors will watch whether the company can reverse the revenue decline when it reports Q2 results later this year.
This article is for informational purposes only and does not constitute investment advice.
