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What's in Store for The Rubicon Project (RUBI) Q4 Earnings?

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The Rubicon Project is set to report fourth-quarter 2019 results on Feb 26.

For the quarter, the company expects revenues between $47 million and $48.5 million.

The Zacks Consensus Estimate for revenues is pegged at $48.2 million, indicating growth of 16.2% from the year-ago reported figure.

Moreover, the consensus mark for earnings stands at 14 cents per share, which has increased 16.7% over the past 30 days.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 86.7%.
 

The Rubicon Project, Inc. Price and EPS Surprise

The Rubicon Project, Inc. Price and EPS Surprise

The Rubicon Project, Inc. price-eps-surprise | The Rubicon Project, Inc. Quote

 

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

Key Factors to Consider

Rubicon Project’s top line in the fourth quarter is expected to have benefited from the momentum in mobile and video revenues. Earlier in the third quarter, mobile revenues increased 26% year over year while desktop revenues grew 28%.

Strong demand for video advertising inventory owing to higher engagement and ROIs is a major growth driver for Rubicon Project. The company’s wide range of video offerings is likely to drive the top line significantly in the to-be-reported results.

Further, increased adoption of Prebid-based Demand Manager might have aided the top line in the period under review.

The completion of RTK.io acquisition is also likely to have provided a boost to the company’s footprint in the emerging market of Prebid tools. Moreover, the buyout might have extended Rubicon Project’s clientele.

Additionally, continued gains from Rubicon Project’s network efficiency initiative are expected to have contributed to profitability in the quarter to be reported.

Key Developments in Q4

On Dec 9, Rubicon Project announced a partnership with IZON Network, which allows advertisers and brands to access more than 6,000 DOOH (digital-out-of-home) screens and 2.4 million premium users across the United States.

Moreover, on Dec 19, Rubicon Project and Telaria announced a definitive agreement to execute a stock-for-stock merger. The transaction, expected to close in the first half of 2020, will create the world’s largest independent sell-side advertising platform.

What Our Model Says

According to the Zacks model, a company with a positive Earnings ESP along with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates.

Rubicon Project has a Zacks Rank #3 and an Earnings ESP of +3.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable Combination

Here are some other stocks worth considering as our model shows these too have the right combination of elements to beat on earnings.

Guidewire Software (GWRE - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marvell Technology (MRVL - Free Report) has an Earnings ESP of +5.70% and a Zacks Rank of 3.

ANSYS (ANSS - Free Report) has an Earnings ESP of +2.01% and is Zacks #3 Ranked.


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