Digital casino game platform PlayStudios (NASDAQ:MYPS) will be reporting earnings tomorrow after market close. Here's what to look for.

PlayStudios beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $77.11 million, down 2.9% year on year. It was a weaker quarter for the company, with a miss of analysts' daily active users estimates and a miss of analysts' earnings estimates. It reported 13.29 million monthly active users, up 15.9% year on year.

Is PlayStudios a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting PlayStudios's revenue to decline 5.3% year on year to $75.91 million, a reversal from the 13.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PlayStudios has missed Wall Street's revenue estimates three times over the last two years.

Looking at PlayStudios's peers in the gaming solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 33.9%, beating analysts' expectations by 9.8%, and Churchill Downs reported revenues up 5.6%, topping estimates by 4.4%. Rush Street Interactive traded up 18% following the results while Churchill Downs was also up 4.5%.

Read our full analysis of Rush Street Interactive's results here and Churchill Downs's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the gaming solutions stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. PlayStudios is down 15.7% during the same time and is heading into earnings with an average analyst price target of $4.9 (compared to the current share price of $2.37).

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