Playstudios Inc Down 11.28% To $4.09 After Earnings Beat

Playstudios Inc (MYPS) beat out earnings estimates for Q2 2023 this afternoon.

Wall Street earnings per share (EPS) projections for Playstudios Inc were at a loss of $0.04 per share. The company beat those estimates with an EPS loss of $0.01 per share. The loss of $0.01 per share (which represents a -75% EPS surprise) led to the company's profits falling 125% compared to last year when the firm reported an EPS of $0.04. The decline in Playstudios Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Analyst projections for Playstudios Inc revenue came in at a consensus of $77.1 million. Second-Quarter revenues surpassed estimates for $77.8 million by $673 thousand (1%). The company achieved 14% growth year-over-year compared to the firm's revenue of $68.4 million from the year-ago quarter. The lower earnings growth relative to revenue signals Playstudios Inc has not been able to improve its profit margin.

The stock is down 11.28% to $4.09 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 68. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

PLAYSTUDIOS Inc is engaged in gaming and related business. Some of the games offered by the company include myVEGAS Slots, myVEGAS Blackjack, my KONAMI Slots, POP! Slots, myVEGAS Bingo, MGM Slots Live, and Tetris. Its games are available on iTunes and Google Play. Nearly all of the company's revenue is derived from in-game purchases.