Why Cardlytics Stock Is Racing Higher After Earnings

Zinger Key Points
  • Cardlytics reports quarterly earnings of 14 cents per share which beat the analyst consensus estimate of 12 cents. 
  • Quarterly sales come in at $89.167 million, just missing the analyst consensus estimate of $89.551 million.

Cardlytics, Inc. CDLX shares are trading higher Friday after the company posted better-than-expected fourth-quarter financial results and issued first-quarter revenue guidance above estimates.

The Details:

The company reported quarterly earnings of 14 cents per share which beat the analyst consensus estimate of 12 cents. 

Quarterly sales came in at $89.167 million, just missing the analyst consensus estimate of $89.551 million, and representing a 8.08% increase over the same period last year.

“The fourth quarter capped a transformational year for Cardlytics,” said Karim Temsamani, CEO of Cardlytics. “With our cost structure rebalanced, we can now focus on building a best-in-class platform with top-tier targeting and a differentiated user experience that will help deliver the best outcomes for our partners, their customers and our advertisers.”

Cardlytics sees first-quarter revenue of between $70 million and $73 million, above the $66.46 million estimate. 

Needham analyst Kyle Peterson maintained Cardlytics with a Buy rating and raised the price target from $12 to $15 following the print. 

Related News: Blink Charging Q4 Earnings: Revenue and EPS Beat, Strong FY24 Outlook and More

CDLX Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Cardlytics, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Cardlytics, the 200-day moving average sits at $9.82, according to Benzinga Pro, which is below the current price of $12.71. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CDLX Price Action: According to Benzinga Pro, Cardlytics shares are up 50.3% at $12.30 at the time of publication.

Image: Pete Linforth from Pixabay

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!