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PubMatic (PUBM) to Report Q3 Earnings: What's in the Cards?

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PubMatic (PUBM - Free Report) is set to release its third-quarter 2022 results on Nov 8.

For the third quarter, the company expects revenues between $66 million and $68 million, indicating growth of 15% year over year at the midpoint of the guided range.

The Zacks Consensus Estimate for the top line is currently pegged at $66.88 million, indicating 15.13% growth from the year-ago quarter’s reported figure.

The consensus mark for earnings has been unchanged at 13 cents per share over the past 30 days, suggesting a 45.83% decline from the figure reported in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 163.26% on average.
 

PubMatic, Inc. Price and EPS Surprise

PubMatic, Inc. Price and EPS Surprise

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

 

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

Factors to Consider

In the third quarter, PubMatic’s top line is expected to have benefited from an expanding Connected TV publisher base, as well as spending. A well-diversified portfolio of advertisers has been a tailwind for the company.

The company’s market share is expected to have increased in the to-be-reported quarter, driven by its global, omnichannel scale as well as strong demand for its robust solutions. The company benefits from a solid net dollar retention rate, which was 130% for the trailing 12 months in the previous quarter.

However, macroeconomic challenges, including raging inflation, rising interest rates, the Russia-Ukraine war and ongoing supply chain disruptions, are expected to have hurt PubMatic’s 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.

PubMatic 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

New Relic has an Earnings ESP of +50.00% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

New Relic shares are down 51.8% year to date. NEWR is set to report its second-quarter fiscal 2022 results on Nov 8.

Ringcentral (RNG - Free Report) has an Earnings ESP of +2.74% and a Zacks Rank #3.

Ringcentral shares have declined 84.1% on a year-to-date basis. The company is set to report its third-quarter 2022 results on Nov 9.

Upstart (UPST - Free Report) has an Earnings ESP of +42.86% and a Zacks Rank #3.

Upstart shares are down 87.2% year to date. UPST is set to report its third-quarter 2022 results on Nov 8.

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


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