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For the quarter under review, Perion reported strong preliminary results on Jan 4. The advertising technology company now anticipates revenues of $205 million, which suggests 30% growth from the figure reported in the year-ago quarter.
Adjusted EBITDA is expected to be $47 million, indicating a whopping 63% increase from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, unchanged over the past 30 days. The figure indicates an improvement of 59.1% from the year-ago quarter.
The consensus mark for revenues stands at $205.1 million, which suggests an increase of 29.81% from the year-ago quarter.
Perion’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 27.79%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Perion’s fourth-quarter performance is likely to have benefited from its diversified revenue base. High-margin business segments like display advertising and search advertising accounted for 55% and 45% of revenues in third-quarter 2022, respectively. This trend is expected to have continued in the fourth quarter of 2022.
Perion’s display advertising revenues are expected to reflect benefits from the rising adoption of the company’s video and CTV solutions. The increasing average deal size with customers and the acquisition of Vidazoo, which is helping Perion to strengthen its partnership with publishers by helping them monetize their products and services seamlessly, are likely to have boosted display advertising revenue growth.
Moreover, the growing requirement for privacy is expected to have kept demand for SORT, thereby driving Perion’s top-line growth. In third-quarter 2022, the number of SORT customers rose to 140, up 11% sequentially. SORT customer spending increased by 25% during that period, representing 17% of display advertising revenue.
Perion Network’s performance is likely to have gained from its continued investments to build its central intelligent hub, which aids in connecting all assets and demand and supply data regarding it in one single database that, in turn, increases operational efficiency. This is expected to get reflected in the company’s EBITDA numbers in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Perion has an Earnings ESP of +13.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
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Perion Network (PERI) to Post Q4 Earnings: What to Expect
Perion Network (PERI - Free Report) is slated to release its fourth-quarter 2022 results on Feb 8.
For the quarter under review, Perion reported strong preliminary results on Jan 4. The advertising technology company now anticipates revenues of $205 million, which suggests 30% growth from the figure reported in the year-ago quarter.
Adjusted EBITDA is expected to be $47 million, indicating a whopping 63% increase from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for earnings is pegged at 70 cents per share, unchanged over the past 30 days. The figure indicates an improvement of 59.1% from the year-ago quarter.
The consensus mark for revenues stands at $205.1 million, which suggests an increase of 29.81% from the year-ago quarter.
Perion’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 27.79%.
Perion Network Ltd Price and EPS Surprise
Perion Network Ltd price-eps-surprise | Perion Network Ltd Quote
Let’s see how things have shaped up for this announcement.
Factors to Consider
Perion’s fourth-quarter performance is likely to have benefited from its diversified revenue base. High-margin business segments like display advertising and search advertising accounted for 55% and 45% of revenues in third-quarter 2022, respectively. This trend is expected to have continued in the fourth quarter of 2022.
Perion’s display advertising revenues are expected to reflect benefits from the rising adoption of the company’s video and CTV solutions. The increasing average deal size with customers and the acquisition of Vidazoo, which is helping Perion to strengthen its partnership with publishers by helping them monetize their products and services seamlessly, are likely to have boosted display advertising revenue growth.
Moreover, the growing requirement for privacy is expected to have kept demand for SORT, thereby driving Perion’s top-line growth. In third-quarter 2022, the number of SORT customers rose to 140, up 11% sequentially. SORT customer spending increased by 25% during that period, representing 17% of display advertising revenue.
Perion Network’s performance is likely to have gained from its continued investments to build its central intelligent hub, which aids in connecting all assets and demand and supply data regarding it in one single database that, in turn, increases operational efficiency. This is expected to get reflected in the company’s EBITDA numbers in the to-be-reported quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Perion has an Earnings ESP of +13.40% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Cambium Networks (CMBM - Free Report) has an Earnings ESP of +9.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium shares have declined 11.4% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.
Bruker (BRKR - Free Report) has an Earnings ESP of +3.88% and a Zacks Rank of 2, at present.
Bruker shares have gained 7.5% in the past year. BRKR is set to report its fourth-quarter 2022 results on Feb 9.
Lyft (LYFT - Free Report) has an Earnings ESP of +42.37% and a Zacks Rank #2.
LYFT shares have declined 55.6% in the past year. Lyft is set to report its fourth-quarter 2022 results on Feb 9.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.