Digital media conglomerate People (NASDAQGS:PPLI) will be announcing earnings results this Monday after the bell. Here’s what to expect.
People missed analysts’ revenue expectations last quarter, reporting revenues of $422.9 million, down 12.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is People a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting People’s revenue to decline 14.3% year on year, a further deceleration from the 7.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at People’s peers in the media & entertainment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 12.2%, beating analysts’ expectations by 8.8%, and MediaAlpha reported revenues up 25.9%, topping estimates by 4.2%. IMAX traded up 10.4% following the results while MediaAlpha was down 1.9%.
Read our full analysis of IMAX’s results here and MediaAlpha’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 2.6% on average over the last month. People is down 12% during the same time and is heading into earnings with an average analyst price target of $52.20 (compared to the current share price of $41.57).
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