Exploring Trade Desk's Earnings Expectations

Trade Desk TTD is set to give its latest quarterly earnings report on Thursday, 2024-11-07. Here's what investors need to know before the announcement.

Analysts estimate that Trade Desk will report an earnings per share (EPS) of $0.39.

Anticipation surrounds Trade Desk's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.04, leading to a 12.5% increase in the share price on the subsequent day.

Here's a look at Trade Desk's past performance and the resulting price change:

Market Performance of Trade Desk's Stock

Shares of Trade Desk were trading at $119.94 as of November 05. Over the last 52-week period, shares are up 61.24%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on Trade Desk

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Trade Desk.

The consensus rating for Trade Desk is Buy, derived from 29 analyst ratings. An average one-year price target of $117.9 implies a potential 1.7% downside.

Peer Ratings Comparison

The following analysis focuses on the analyst ratings and average 1-year price targets of Omnicom Group, Interpublic Gr of Cos and Ibotta, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Omnicom Group, with an average 1-year price target of $114.43, suggesting a potential 4.59% downside.
• The consensus among analysts is an Neutral trajectory for Interpublic Gr of Cos, with an average 1-year price target of $31.21, indicating a potential 73.98% downside.
• Ibotta is maintaining an Outperform status according to analysts, with an average 1-year price target of $94.91, indicating a potential 20.87% downside.

Peer Metrics Summary

The peer analysis summary offers a detailed examination of key metrics for Omnicom Group, Interpublic Gr of Cos and Ibotta, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Trade Desk is positioned at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.

Unveiling the Story Behind Trade Desk

The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, and social) on different devices like computers, smartphones, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising.

Unraveling the Financial Story of Trade Desk

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Trade Desk displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 25.91%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Trade Desk's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 14.55%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Trade Desk's ROE stands out, surpassing industry averages. With an impressive ROE of 3.72%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Trade Desk's ROA stands out, surpassing industry averages. With an impressive ROA of 1.73%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Trade Desk's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.11.

To track all earnings releases for Trade Desk visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.