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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 first-quarter 2022 results on May 4.

For the quarter, the company expects revenues between $105 million and $109 million.

For the quarter, the Zacks Consensus Estimate for earnings has been steady at 7 cents per share over the past 30 days. The figure indicates 133.3% growth from the year-ago reported figure.

The consensus mark for revenues is pegged at $107 million, indicating a 76.22% increase from the year-ago reported figure.

The company’s earnings beat the Zacks Consensus Estimate in one of the last four quarters, missed in two and were in line with the same in the remaining one. The company has a trailing four-quarter earnings surprise of 6.8%, on average.

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

Factors to Consider

Magnite’s first-quarter performance is expected to have benefited from a continued strong recovery in the digital advertising market. A strong product portfolio, thanks to Unified Decisioning products and the Demand Manager offering and 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, including Connected Television (“CTV”), mobile, non-CTV video and display, is likely to have aided the Magnite’s performance in the first quarter.

In the fourth quarter of 2021, the company reported revenues of $65.2 million, up 42% year over year, mainly driven by the Telaria merger. The trend is likely to have continued in the to-be-reported 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 increased 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 capabilities to advertisers — is expected to have driven the top line.

Magnite, Inc. Price and EPS Surprise

 

Magnite, Inc. Price and EPS Surprise

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

 

In the last reported quarter, Magnite’s CTV revenues excluding TAC jumped 23% year over year to $54 million. The company expects revenues between $40 million and $42 million in the first quarter.

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

The company has been making investments in products, features, audience and identity, which showcases that Magnite expects a strong top-line growth and continued profitability in the to-be-reported quarter.

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. 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:

Cogent Communications (CCOI - Free Report) has an Earnings ESP of +13.86% and a Zacks Rank #2. The company is scheduled to release first-quarter 2022 results on May 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

BWX Technologies (BWXT - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #2. The company is set to announce first-quarter 2022 results on May 9.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #2. The company is set to announce second-quarter 2022 results on May 18.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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