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The Trade Desk (TTD) to Report Q4 Earnings: What's in Store?
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The Trade Desk (TTD - Free Report) is set to release fourth-quarter 2020 results on Feb 18.
For the quarter, the company expects revenues between $287 million and $291 million, indicating 33-35% growth on a year-over-year basis.
The Zacks Consensus Estimate for the top line is currently pegged at $291.3 million, indicating 35% growth from the year-ago quarter’s reported figure.
However, the consensus mark for earnings has been unchanged at $1.90 per share over the past 30 days, suggesting 27.5% growth from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 105.5%.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
The Trade Desk’s top line, in the fourth quarter, is expected to have benefited from the momentum in programmatic ad buying. Further, the emergence of digital content boosted the usage of the company’s inventory across all forms of Connected-TV (“CTV”).
Notably, CTV spending grew more than 100% in the third quarter. The momentum is expected to have continued in the to-be-reported quarter.
Moreover, strong ad holiday spending and an expanding base are expected to have aided The Trade Desk’s top line in the December quarter.
Furthermore, consistent customer retention is expected to have perked up the company’s revenues during the quarter. The Trade Desk’s customer-retention rate has remained more than 95%, as it has for the previous five years.
However, accelerated spending is expected to have hurt bottom-line growth in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
The Trade Desk has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
HP (HPQ - Free Report) has an Earnings ESP of +2.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
3D Systems (DDD - Free Report) has an Earnings ESP of +29.63% and is #2 Ranked.
Airbnb (ABNB - Free Report) has an Earnings ESP of +54.61% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
The Trade Desk (TTD) to Report Q4 Earnings: What's in Store?
The Trade Desk (TTD - Free Report) is set to release fourth-quarter 2020 results on Feb 18.
For the quarter, the company expects revenues between $287 million and $291 million, indicating 33-35% growth on a year-over-year basis.
The Zacks Consensus Estimate for the top line is currently pegged at $291.3 million, indicating 35% growth from the year-ago quarter’s reported figure.
However, the consensus mark for earnings has been unchanged at $1.90 per share over the past 30 days, suggesting 27.5% growth from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 105.5%.
The Trade Desk Inc. Price and EPS Surprise
The Trade Desk Inc. price-eps-surprise | The Trade Desk Inc. Quote
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
The Trade Desk’s top line, in the fourth quarter, is expected to have benefited from the momentum in programmatic ad buying. Further, the emergence of digital content boosted the usage of the company’s inventory across all forms of Connected-TV (“CTV”).
Notably, CTV spending grew more than 100% in the third quarter. The momentum is expected to have continued in the to-be-reported quarter.
Moreover, strong ad holiday spending and an expanding base are expected to have aided The Trade Desk’s top line in the December quarter.
Furthermore, consistent customer retention is expected to have perked up the company’s revenues during the quarter. The Trade Desk’s customer-retention rate has remained more than 95%, as it has for the previous five years.
However, accelerated spending is expected to have hurt bottom-line growth in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
The Trade Desk has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
HP (HPQ - Free Report) has an Earnings ESP of +2.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
3D Systems (DDD - Free Report) has an Earnings ESP of +29.63% and is #2 Ranked.
Airbnb (ABNB - Free Report) has an Earnings ESP of +54.61% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>