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What to Expect From Direct Digital's (DRCT) Q4 Earnings?

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Direct Digital Holdings, Inc. (DRCT - Free Report) is scheduled to release its fourth-quarter 2023 results on Mar 21, after the bell.

The company has an impressive earnings surprise history. It outperformed the Zacks Consensus Estimate in two of the four trailing quarters, matched once and missed once, delivering an earnings surprise of 70.2% on average.

Q4 Expectations

The Zacks Consensus Estimate for the top line in the to-be-reported quarter is currently pegged at $66 million, indicating more than 100% growth from the year-ago actual figure. We believe Direct Digital’s demand environment has stayed healthy in the quarter and the company’s technology partnerships and investments in operational structure and advertising platform have well-catered to the increasing demand.

The Zacks Consensus Estimate for the bottom line is pegged at 28 cents, indicating more than 100% year-over-year growth. We are expecting increased spend from the company’s buying partners in the quarter, thereby increasing impression count and organic growth and positively impacting net income and adjusted EBITDA.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for DRCT this time around. 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. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

Direct Digital has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Earnings of Some Other Service Providers

Robert Half (RHI - Free Report) reported better-than-expected fourth-quarter 2023 results.

Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.

Aptiv (APTV - Free Report)  reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $1.40 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.

S&P Global (SPGI - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate, but revenues beat the same.

Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.

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

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