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Digital Turbine (APPS) to Post Q4 Earnings: What's in Store?

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Digital Turbine (APPS - Free Report) is set to release fourth-quarter fiscal 2019 results on Jun 3.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 87.5%.

In the last reported quarter, earnings of 4 cents per share beat the Zacks Consensus Estimate by a couple of cents. The company had reported loss of a cent in the year-ago quarter.

Revenues grew 34% year over year to $30.4 million and was better than the consensus mark.

Digital Turbine’s mobile device management platform, Ignite, has gained significant traction. In third-quarter fiscal 2019, Ignite was installed on roughly 28 million devices. As of Feb 5, 2019, approximately 230 million devices had Ignite installed, which is a major driver for the company’s advertising revenue growth in the to-be-reported quarter.

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote

Further, renewed partnerships with large U.S. carriers, including Verizon (VZ - Free Report) , AT&T Wireless and Cricket Wireless, are a key catalyst. The company’s advertiser base has also expanded with the addition of Netflix (NFLX - Free Report) and Microsoft division LinkedIn.

Moreover, improving global revenue per device (RPD) indicates solid demand for the company’s ad solutions. Additionally, expanding International partner base is expected to drive the top line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for revenues currently stands at $26.6 million, indicating 26.7% growth from the figure reported in the year-ago quarter.

Moreover, the consensus mark for earnings has remained steady at 2 cents over the past 30 days and suggests growth of 300% from the figure reported in the year-ago quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Digital Turbine has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

A Stock With Favorable Combination

Here is a stock you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat.

Science Applications International (SAIC - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.