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The Trade Desk (TTD) to Report Q1 Earnings: What's in Store?
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The Trade Desk (TTD - Free Report) is set to release first-quarter 2020 results on May 7.
For the quarter, the company expects revenues of $169 million. The Zacks Consensus Estimate for the top line is currently pegged at $160 million, indicating 32.2% growth from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has moved a penny south to 46 cents per share over the past 30 days, suggesting a 6.1% 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, the average being 43.2%.
Let’s see how things shaped up prior to this announcement.
Factors to Consider
The Trade Desk’s top line in the first quarter is expected to have benefited from the momentum in programmatic ad buying. The company’s limited exposure to the Travel space, which has been significantly hit by the coronavirus outbreak, is a major positive.
The emergence of digital content boosted the usage of the company’s inventory across all forms of connectedTV (CTV). Despite an overall bleak ad demand and spending scenario due to the coronavirus outbreak, CTV ad spending is expected to have been stable owing to heightened media consumption (amid lockdowns), thereby driving The Trade Desk’s top line in the March quarter.
Moreover, The Trade Desk’s solid partner base that includes the likes of Amazon, Disney, Spotify, Channel 4 (in England), ProSieben (in Germany), TF1 (in France), Baidu, Alibaba and Tencent (in China) is noteworthy. Notably, through its partnerships, the company has been helping advertisers reach premium audiences globally.
Moreover, consistent customer retention is also expected to have perked up the company’s revenues during the quarter. The Trade Desk’s customer retention rate has remained more than 95% in the previous straight 24 quarters.
However, higher operating expenses, particularly selling & marketing, are likely to have kept margins under pressure.
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.
The Trade Desk has an Earnings ESP of -2.88% and 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 from the sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Inphi Corporation has an Earnings ESP of +20.04% and is Zacks #2 Ranked.
Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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The Trade Desk (TTD) to Report Q1 Earnings: What's in Store?
The Trade Desk (TTD - Free Report) is set to release first-quarter 2020 results on May 7.
For the quarter, the company expects revenues of $169 million. The Zacks Consensus Estimate for the top line is currently pegged at $160 million, indicating 32.2% growth from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has moved a penny south to 46 cents per share over the past 30 days, suggesting a 6.1% 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, the average being 43.2%.
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 shaped up prior to this announcement.
Factors to Consider
The Trade Desk’s top line in the first quarter is expected to have benefited from the momentum in programmatic ad buying. The company’s limited exposure to the Travel space, which has been significantly hit by the coronavirus outbreak, is a major positive.
The emergence of digital content boosted the usage of the company’s inventory across all forms of connectedTV (CTV). Despite an overall bleak ad demand and spending scenario due to the coronavirus outbreak, CTV ad spending is expected to have been stable owing to heightened media consumption (amid lockdowns), thereby driving The Trade Desk’s top line in the March quarter.
Moreover, The Trade Desk’s solid partner base that includes the likes of Amazon, Disney, Spotify, Channel 4 (in England), ProSieben (in Germany), TF1 (in France), Baidu, Alibaba and Tencent (in China) is noteworthy. Notably, through its partnerships, the company has been helping advertisers reach premium audiences globally.
Moreover, consistent customer retention is also expected to have perked up the company’s revenues during the quarter. The Trade Desk’s customer retention rate has remained more than 95% in the previous straight 24 quarters.
However, higher operating expenses, particularly selling & marketing, are likely to have kept margins under pressure.
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.
The Trade Desk has an Earnings ESP of -2.88% and 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 from the sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Shopify (SHOP - Free Report) has an Earnings ESP of +23.41% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inphi Corporation has an Earnings ESP of +20.04% and is Zacks #2 Ranked.
Take Two Interactive (TTWO - Free Report) has an Earnings ESP of +13.24% and a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>