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The Trade Desk (TTD) to Report Q3 Earnings: What's in Store?

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The Trade Desk (TTD - Free Report) is set to release third-quarter 2021 results on Nov 8.

For the quarter, the company expects revenues of at least $282 million.

The Zacks Consensus Estimate for the top line is currently pegged at $283.6 million, indicating 31.2% growth from the year-ago quarter’s reported figure.

The consensus mark for earnings has been unchanged at 16 cents per share over the past 30 days, suggesting 23.1% growth from the figure reported in the year-ago quarter.
 

The Trade Desk Price and EPS Surprise

The Trade Desk Price and EPS Surprise

The Trade Desk price-eps-surprise | The Trade Desk Quote

 

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 91.2%, on average.

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

Factors to Consider

The Trade Desk’s top line, in the third quarter, is expected to have benefited from momentum in programmatic ad buying. The emergence of digital content boosted usage of the company’s inventory across all forms of Connected-TV (“CTV”). Strong CTV spending is expected to have continued in the to-be-reported quarter.

At the end of the second quarter, The Trade Desk had roughly 10,000 CTV advertisers on its platform, up more than 50% year over year.

The company is expected to have benefited from the launch of new version of its platform, Solimar.

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 seven 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:

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.

Blink Charging (BLNK - Free Report) has an Earnings ESP of +8.33% and a Zacks Rank #3.