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For the quarter under review, the Zacks Consensus Estimate for earnings is pegged at 56 cents per share, unchanged over the past 30 days. The figure indicates an improvement of 100% from the year-ago quarter.
The consensus mark for revenues stands at $158 million, which suggests an increase of 30.55% from the year-ago quarter.
The firm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 39.44%.
Perion Network’s third-quarter performance is likely to have benefited from the company’s strategy to diversify its revenue source. As a result of its diversification strategy, high-margin business segments, display advertising and search advertising revenue segment grew exponentially in the last reported quarter. This trend is expected to have continued in the third quarter of 2022.
PERI’s display advertising revenues are expected to reflect benefits from the rising adoption of the company’s video and CTV solutions. The increasing average deal size with customers and the acquisition of Vidazoo, which is helping PERI to strengthen its partnership with publishers by helping them monetize their products and services seamlessly, are likely to have boosted display advertising revenue growth.
One of the solutions that is expected to have extensively contributed to Perion Network’s display advertising revenues in the to-be-reported quarter is Smart Optimization of Responsive Traits (SORT). SORT is a proprietary cookie-free technology that delivers greater ROAS for customers than third-party cookies.
SORT is a technology outcome of the company’s investment in developing its intelligent hub, which has been driving the company’s diversification strategy and increasing operational efficiency.
Perion Network’s performance is likely to have gained from its continued investments to build its central intelligent hub, which aids in connecting all assets and demand and supply data regarding it in one single database that, in turn, increases operational efficiency. This is expected to get reflected in the company’s EBITDA numbers in the to-be-reported quarter.
PERI’s third-quarter 2022 performance is expected to have benefited from its multi-year contract with Microsoft (MSFT - Free Report) , which is likely to end in 2024.
Perion Networks is currently leveraging its partnership with Microsoft Bing into other parts of Microsoft advertising to aid in its revenue diversification strategy.
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.
Perion Networks has an Earnings ESP of 0.00% and a Zacks Rank #2 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 worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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Perion Network (PERI) to Post Q3 Earnings: What to Expect
Perion Network (PERI - Free Report) is slated to release third-quarter fiscal 2022 results on Nov 8.
For the quarter under review, the Zacks Consensus Estimate for earnings is pegged at 56 cents per share, unchanged over the past 30 days. The figure indicates an improvement of 100% from the year-ago quarter.
The consensus mark for revenues stands at $158 million, which suggests an increase of 30.55% from the year-ago quarter.
The firm’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 39.44%.
Perion Network Ltd Price and EPS Surprise
Perion Network Ltd price-eps-surprise | Perion Network Ltd Quote
Factors to Note
Perion Network’s third-quarter performance is likely to have benefited from the company’s strategy to diversify its revenue source. As a result of its diversification strategy, high-margin business segments, display advertising and search advertising revenue segment grew exponentially in the last reported quarter. This trend is expected to have continued in the third quarter of 2022.
PERI’s display advertising revenues are expected to reflect benefits from the rising adoption of the company’s video and CTV solutions. The increasing average deal size with customers and the acquisition of Vidazoo, which is helping PERI to strengthen its partnership with publishers by helping them monetize their products and services seamlessly, are likely to have boosted display advertising revenue growth.
One of the solutions that is expected to have extensively contributed to Perion Network’s display advertising revenues in the to-be-reported quarter is Smart Optimization of Responsive Traits (SORT). SORT is a proprietary cookie-free technology that delivers greater ROAS for customers than third-party cookies.
SORT is a technology outcome of the company’s investment in developing its intelligent hub, which has been driving the company’s diversification strategy and increasing operational efficiency.
Perion Network’s performance is likely to have gained from its continued investments to build its central intelligent hub, which aids in connecting all assets and demand and supply data regarding it in one single database that, in turn, increases operational efficiency. This is expected to get reflected in the company’s EBITDA numbers in the to-be-reported quarter.
PERI’s third-quarter 2022 performance is expected to have benefited from its multi-year contract with Microsoft (MSFT - Free Report) , which is likely to end in 2024.
Perion Networks is currently leveraging its partnership with Microsoft Bing into other parts of Microsoft advertising to aid in its revenue diversification strategy.
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.
Perion Networks has an Earnings ESP of 0.00% and a Zacks Rank #2 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 worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Backblaze (BLZE - Free Report) currently has an Earnings ESP of +7.41% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
BLZE shares have lost 75.1% in the year-to-date period compared with the Zacks Internet - Software industry’s decline of 64.1%.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present.
TME shares have lost 42.1% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 41.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.