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Magnite (MGNI) to Report Q4 Earnings: What's in the Cards?

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Magnite (MGNI - Free Report) is set to report fourth-quarter 2020 results on Feb 24.

For the quarter, the Zacks Consensus Estimate for earnings has been moved up 2 cents to 17 cents per share over the past 30 days. The company reported earnings of 17 cents in the year-ago quarter.

The consensus mark for revenues is pegged at $82 million, suggesting a 69.1% surge from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 78.2%.

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

 

Magnite, Inc. Price and EPS Surprise Magnite, Inc. Price and EPS Surprise

Magnite, Inc. price-eps-surprise | Magnite, Inc. Quote

Factors to Consider

Magnite’s fourth-quarter performance is anticipated to have benefited from strength across all of its formats and device types, which include Connected Television (CTV), non-CTV video, mobile and display.

In programmatic ad-supported CTV, the company is likely to have gained from increased cord cutting and growing traction of ad-supported programmatic CTV led by a shift from direct sales to programmatic ad-spending.

Moreover, expanded live sports access on ad-supported CTV, along with robust adoption of ad-supported free and lower-cost content and growing streaming TV content line-up are expected to have been major growth drivers for this Zacks Rank #2 (Buy) company’s CTV business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Markedly, in the third quarter of 2020, Magnite’s CTV revenues jumped 51% year over year to $11.1 million, primarily on the elevated CTV spending by advertisers in the technology, direct to consumer, and consumer packaged goods verticals. This strong momentum is likely to have continued to fuel top-line growth in the fourth quarter as well.

Further, the top line is likely to have gained from solid demand for the company’s CTV addressability capabilities, which provides data-driven audience targeting features to advertisers.

Apart from this, growing momentum of Demand Manager among publishers is likely to have been a major positive. In addition, expansion of the company’s publisher-focused prebid offering with Demand Manager Mobile is likely to have aided contract wins in the to-be-reported quarter.

Additionally, in the fourth quarter, Magnite’s TV content reporting platform was selected by Crackle Plus, to share content metadata with the latter’s advertising partners.

Furthermore, contributions from a broad partner base, including Disney (DIS - Free Report) , Sling, Pluto, DISH and Tubi, along with device manufacturing companies, such as Samsung, Sony, LG and Vizio, and broadcasting cable companies, such as Discovery , FOX and NBC, are anticipated to have been conducive to Magnite’s top-line growth in the quarter under review.

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