Vertigo3d/E+ via Getty Images
The Trade Desk (NASDAQ:TTD) is set to post its fourth quarter results on Thursday after markets close.
Wall Street expects the California-based digital ad tech firm, which enables ad buyers to create and manage digital advertising campaigns, to post EPS of $0.43, representing a rise of 13.2%, while revenue is expected to rise 18.6% to $582.23 million.
Earlier in November, TTD beat expectations with its third-quarter results but gave a weak forecast for the fourth quarter. It said that it saw “cautiousness” from some advertisers, including the auto industry and media and entertainment, mainly due to the recent strikes in both verticals.
The stock has lost nearly 5% since its third quarter results.
However, with the ad market getting a rebound, especially during the holiday quarter, analysts are positive on TTD’s long-term opportunities. Both Seeking Alpha and Wall Street analysts are bullish and rated the stock a Buy.
HSBC said that the company’s "track record for innovation" should support continued outperformance.
“The Trade Desk has outpaced the digital advertising industry with its innovations in programmatic advertising and market positioning as a demand side platform,” pointed out a recent Seeking Alpha analysis by Taylor Irwin, adding that the company has additional growth opportunities in the Connected-TV and Retail Media verticals.
However, Seeking Alpha’s Quant Ratings are cautious and consider the stock a Hold, with a score of 3.07 out of 5 and dragged down mostly by valuation.
Over the last one year, TTD has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time.
The stock has gained nearly 49% in the last one year, outperforming the over 20% rise in the broader S&P500 Index.
Over the last three months, EPS estimates have seen three upward revisions and 15 downward revisions, while revenue estimates have seen two upward revisions versus three downward moves.