The Trade Desk (TTD) to Report Q1 Earnings: What's in Store?
The Trade Desk TTD is set to release first-quarter 2021 results on May 10.
For the quarter, the company expects revenues between $214 million and $217 million.
The Zacks Consensus Estimate for the top line is currently pegged at $216.5 million, indicating 35% growth from the year-ago quarter’s reported figure.
However, the consensus mark for earnings has been unchanged at 82 cents per share over the past 30 days, suggesting 9% decline from the figure reported in the year-ago quarter.
The Trade Desk Inc. Price and EPS Surprise
The Trade Desk Inc. price-eps-surprise | The Trade Desk Inc. Quote
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 123.1%.
Let’s see how things have 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. Further, the emergence of digital content boosted usage of the company’s inventory across all forms of Connected-TV (“CTV”).
Notably, CTV spending more than doubled in 2020. The momentum is expected to have continued in the to-be-reported quarter.
Furthermore, consistent customer retention is expected to have perked up the company’s revenues during the quarter. The Trade Desk’s customer-retention rate has remained more than 95%, as it has for the previous six years.
However, accelerated spending is expected to have hurt bottom-line growth in the to-be-reported quarter.
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 0.00% 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, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
NVIDIA NVDA has an Earnings ESP of +2.51% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent Technologies A has an Earnings ESP of +1.57% and is #2 Ranked.
Cisco Systems CSCO has an Earnings ESP of +0.52% and a Zacks Rank #3.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
The Trade Desk Inc. (TTD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
