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What's in the Offing for Magnite (MGNI) This Earnings Season?

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Magnite (MGNI - Free Report) is set to report third-quarter 2021 results on Nov 3.

For the quarter, the company expects revenues between $112 million and $116 million.

For the quarter, the Zacks Consensus Estimate for earnings has been steady at 15 cents per share over the past 30 days. The figure indicates 150% growth from the year-ago reported figure.

The consensus mark for revenues, pegged at $114 million, implies 87% increase from the year-ago reported figure.
 

Magnite, Inc. Price and EPS Surprise

Magnite, Inc. Price and EPS Surprise

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

 

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and was in line with the same in the remaining one, the average earnings surprise being 90.4%.

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

Factors to Consider

Magnite’s third-quarter results are expected to have benefited from continued strong recovery in the digital advertising market. A strong product portfolio, thanks to Unified Decisioning products and the Demand Manager offering, as well as steady traction in targeted advertising, is expected to have benefited the top line in the to-be-reported quarter.

Steady momentum across all formats and device types, which include Connected Television (“CTV”), mobile, non-CTV video and display, is likely to have aided the Magnite’s performance in the third quarter.

Acquisitions, SpotX and SpringServe have expanded Magnite’s addressable market, which is expected to have driven top-line growth.

The company is anticipated to have benefited from increased cord cutting and increasing traction of ad-supported programmatic CTV, led by a shift from direct sales to programmatic ad-spending. Healthy demand for the company’s CTV addressability capabilities — that offer data-driven audience targeting capabilties to advertisers — is expected to have driven the top line.

In the last-reported quarter, Magnite’s CTV revenues excluding TAC jumped 108% year over year to $34.3 million. The company expects revenues between $41 million and $45 million in the third quarter.

Contributions from a robust partner base, including the likes of Sling, Hulu, Pluto, Tubi, Discovery and Fox, as well as device manufacturing companies such as Roku and Samsung, is likely to have positively contributed to Magnite’s revenues in the quarter under review.

What Our Model Says

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.

Magnite has an Earnings ESP of 0.00% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few 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:

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics (SYNA - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #2.

PerkinElmer has an Earnings ESP of +5.20% and a Zacks Rank #2.


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