Countdown to Webtoon (WBTN) Q4 Earnings: A Look at Estimates Beyond Revenue and EPS

In its upcoming report, Webtoon Entertainment (WBTN) is predicted by Wall Street analysts to post quarterly loss of -$0.04 per share, reflecting a decline of 33.3% compared to the same period last year. Revenues are forecasted to be $334.44 million, representing a year-over-year decrease of 5.2%.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Webtoon metrics that Wall Street analysts commonly model and monitor.

The combined assessment of analysts suggests that 'Revenue- Paid Content Revenue' will likely reach $270.92 million. The estimate indicates a year-over-year change of +0.3%.

Analysts' assessment points toward 'Revenue- IP Adaptations Revenue' reaching $25.90 million. The estimate points to a change of -30.6% from the year-ago quarter.

Analysts expect 'Revenue- Advertising Revenue' to come in at $38.65 million. The estimate points to a change of -14.7% from the year-ago quarter.

It is projected by analysts that the 'Monthly Active Users (MAU)' will reach 153.38 million. Compared to the current estimate, the company reported 163.30 million in the same quarter of the previous year.

The consensus estimate for 'Monthly Active Users (MAU) - Japan' stands at 23.55 million. The estimate compares to the year-ago value of 22.10 million.

Analysts forecast 'Monthly Active Users (MAU) - Rest of World' to reach 106.78 million. Compared to the present estimate, the company reported 116.70 million in the same quarter last year.

The collective assessment of analysts points to an estimated 'Monthly Paying Users (MPU) - Korea' of 3.37 million. Compared to the current estimate, the company reported 3.60 million in the same quarter of the previous year.

The consensus among analysts is that 'Monthly Paying Users (MPU)' will reach 7.22 million. The estimate compares to the year-ago value of 7.50 million.

Analysts predict that the 'Paying Ratio - Korea' will reach 13.9%. Compared to the current estimate, the company reported 14.5% in the same quarter of the previous year.

The average prediction of analysts places 'Paying Ratio - Japan' at 9.4%. The estimate is in contrast to the year-ago figure of 10.3%.

Based on the collective assessment of analysts, 'Paying Ratio' should arrive at 4.7%. Compared to the present estimate, the company reported 4.6% in the same quarter last year.

According to the collective judgment of analysts, 'Monthly Active Users (MAU) - Korea' should come in at 24.25 million. Compared to the present estimate, the company reported 24.50 million in the same quarter last year.

Over the past month, shares of Webtoon have returned -11.5% versus the Zacks S&P 500 composite's +0.6% change. Currently, WBTN carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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This article originally published on Zacks Investment Research (zacks.com).

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