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CooTek (CTK) to Report Q4 Earnings: What's in the Offing?

·3 min read

CooTek (Cayman) Inc. CTK is expected to release fourth-quarter 2020 results on Mar 11.

The company expects quarterly revenues of around $106 million. The Zacks Consensus Estimate for the same is also pegged at $106.5 million, calling for a jump of 54.3%, year on year.

The Zacks Consensus Estimate for the bottom line is pinned at a loss per share of 23 cents, suggesting a wider loss than the year-ago quarter’s 10 cents.

CooTek Cayman Inc. Sponsored ADR Price

CooTek Cayman Inc. Sponsored ADR Price
CooTek Cayman Inc. Sponsored ADR Price

CooTek Cayman Inc. Sponsored ADR price | CooTek Cayman Inc. Sponsored ADR Quote

Let’s see how things have shaped prior to this announcement.

Factors at Consider

CooTek’s quarterly performance is likely to have benefited from the accelerated monetization of its online literature and casual games businesses. Further, increased revenue mix of the in-house ad network is expected to have supported revenue and margin growth during the to-be-reported quarter.

The company’s sustained focus on rolling out new mobile applications is likely to have helped it add new customers, thereby bringing in incremental revenues in the December-end quarter. Its high customer retention ratio is anticipated to have aided top-line growth.

Nonetheless, the company’s bottom-line performance might have been hurt by higher sales and marketing (S&M) expenses mainly due to increased investments in user acquisitions.

What Our Model Says

Our proven model does not predict an earnings beat for CooTek this time around. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

CooTek currently carries a Zacks Rank of 3 (Hold) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post earnings beats this quarter:

Ulta Beauty Inc. ULTA has an Earnings ESP of +6.24% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sierra Metals Inc. SMTS has an Earnings ESP of +12.50% and holds a Zacks Rank of 2, currently.

FedEx Corporation FDX has an Earnings ESP of +2.72% and carries a Zacks Rank of 2 at present.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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Sierra Metals Inc. (SMTS) : Free Stock Analysis Report

CooTek Cayman Inc. Sponsored ADR (CTK) : Free Stock Analysis Report

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