Back to top

Image: Bigstock

The Trade Desk (TTD) to Report Q2 Earnings: What's in Store?

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) is set to release second-quarter 2019 results on Aug 8.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 50.6%.

In the last reported quarter, earnings of 49 cents per share beat the Zacks Consensus Estimate by a whopping 24 cents and jumped 44.1% year over year.

Revenues surged 41.2% year over year to $121 million and comfortably surpassed the consensus mark of $117 million.

For second-quarter 2019, the company expects revenues of $154 million. The Zacks Consensus Estimate for revenues is currently pegged at $155.1 million, indicating 38.1% growth from the figure reported in the year-ago quarter.

Moreover, the Zacks Consensus Estimate for earnings stands at 68 cents, unchanged over the past 30 days and suggests growth of 13.3% from the figure reported in the year-ago quarter.
 

The Trade Desk Inc. Price and EPS Surprise

The Trade Desk Inc. Price and EPS Surprise

The Trade Desk Inc. price-eps-surprise | The Trade Desk Inc. Quote

 

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

The Trade Desk is witnessing increasing adoption of its unified ID solution. The SSPs, publishers, DSPs, DMPs and data providers are choosing this solution to enhance their digital match rates, improve coverage and deliver more relevant advertising.

Additionally, shift in the advertising budget from Linear TV to Connected TV (CTV) is likely to accelerate growth for the company. The emergence of digital content is boosting the usage of the company’s inventory across all forms of CTV. Notably, the primary drivers of The Trade Desk’s CTV inventory are media companies like CBS, ABC, ESPN, AME and others.

At the end of the first quarter, the company reached 80 million households globally through its CTV inventory. The Trade Desk’s top line in the second quarter is expected to significantly benefit from momentum in programmatic ad buying, particularly at TV upfronts (annual gathering of networks and other content providers, where they present their new shows to advertisers.)

Moreover, The Trade Desk’s partnerships with Baidu, iQIYI, Alibaba and Tencent are likely to result in expanded market share in China in the to-be-reported quarter. The company launched a programmatic ad-buying platform in China toward the end of first-quarter 2019.

Notably, through the partnerships, the company is helping advertisers reach premium audiences in China. Additionally, its clients can tap the China market using the same platform they use for the rest of the world. This is expected to attract advertisers and boost their ad spend, thereby driving the top line in the to-be-reported 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.

The Trade Desk 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.

Stocks With Favorable Combination

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

CACI International (CACI - Free Report) has an Earnings ESP of +4.02% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.53% and a Zacks Rank #2.

GTT Communications has an Earnings ESP of +144.44% and a Zacks Rank #3.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cisco Systems, Inc. (CSCO) - free report >>

CACI International, Inc. (CACI) - free report >>

The Trade Desk (TTD) - free report >>

Published in