Skillsoft Corp. (SKIL) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release

Skillsoft (SKIL) is expected to report a quarterly loss of $2.65 per share on revenues of $123.5 million for the quarter ending April 2025, representing a year-over-year EPS increase of 22.5% but a revenue decrease of 3.4%. The consensus EPS estimate has been revised upwards by 10.51% in the last 30 days; however, Skillsoft's Earnings ESP of 0% and a Zacks Rank #3 suggest uncertainty in predicting an earnings beat despite a history of surpassing EPS estimates in the last four quarters.

Analysis

Skillsoft Corp. (SKIL) is poised to release its financial results for the quarter ended April 2025, with market expectations set for a quarterly loss of $2.65 per share on revenues of $123.5 million. This forecast indicates a 22.5% year-over-year improvement in earnings (a narrower loss), contrasting with an anticipated 3.4% decline in revenues from the year-ago period. Notably, the consensus EPS estimate has seen a positive revision, increasing by 10.51% over the last 30 days, suggesting analysts have become more optimistic about the company's bottom-line performance. However, Skillsoft's Zacks Earnings ESP (Expected Surprise Prediction) is currently 0%, and it holds a Zacks Rank #3 (Hold). This combination makes it difficult to definitively predict an earnings beat, despite Skillsoft's consistent history of surpassing consensus EPS estimates in each of the past four quarters, including a significant +202.93% surprise in the last reported quarter. The overall sentiment surrounding the upcoming report is cautious, reflecting the dichotomy between positive estimate revisions and a neutral predictive indicator for an earnings surprise, alongside the challenge of declining revenues.

Key Decisions for Investors

• Investors should closely monitor Skillsoft's actual earnings per share and revenue figures against the consensus estimates of a $2.65 loss and $123.5 million respectively, as well as management's forward-looking guidance to be provided on the June 9, 2025 earnings call.
• Given the 0% Earnings ESP and Zacks Rank #3, which temper expectations despite a history of earnings beats and recent upward EPS estimate revisions, a cautious stance is advisable, recognizing that an earnings beat is not strongly indicated by these quantitative measures.
• Particular attention should be given to management's discussion of strategies to address the projected 3.4% year-over-year revenue decline, as the sustainability of earnings improvement will be closely tied to a reversal of this trend and overall business conditions.