Technology company Trade Desk (TTD) is slated to release its second-quarter earnings results tomorrow after the market closes. For Q2, the consensus estimate for Trade Desk’s earnings is pegged at $0.20 per share. This suggests a slight improvement over the earnings of $0.18 per share reported in the prior-year quarter. Trade Desk has consistently outperformed analysts’ EPS expectations in the past eight quarters.
Meanwhile, revenues are pegged at $364.87 million, higher than the previous quarter’s tally of $304.69 million. At its first-quarter earnings call, Trade Desk stated that it expected Q2 2022 revenues of at least $364 million.
What Does Trade Desk Do?
Based in California, Trade Desk is a provider of a self-service, cloud-based technology platform for advertising buyers in the United States, Europe, and Asia. It allows buyers to create, manage, and optimize more expressive data-driven digital advertising campaigns across ad formats, including display, video, audio, native and social, on a multitude of devices like computers, mobile phones and connected TV.
Wall Street’s Take on TTD
Despite the challenging macro environment, RBC Capital analyst Matthew Swanson believes that Trade Desk will deliver strong Q2 results and continue to outperform its peers.
However, the analyst said, “We don’t expect to see the magnitude of upside that we’ve seen historically, (+4.6% on avg. over the past 4-quarters) given the challenging macro that has shown up in peer results.”
Therefore, Swanson has lowered its forward looking Q3 estimates by 2.5% based on the macro headwinds as well as lowered expected advertising spend.
He has reiterated a Buy rating but reduced the price target on the stock to $75 from $85 (42.1% upside potential).
From the rest of the Street, Trade Desk receives a Strong Buy consensus rating based on 10 recent Buys and one Sell. TTD’s average price forecast of $68.90 suggests upside potential of around 30.5% over the next 12 months
Retail Investors Are Buying TTD Stock
TipRanks’ Stock Investors tool shows that investors currently have a Positive stance on Trade Desk, with 1.1% of investors increasing their exposure to TTD stock over the past 30 days.
Bottom Line
Trade Desk stock has recovered 15% over the past month. Further, it was up 4.6% on Friday and is trading higher in the pre-market trading session today.
Moreover, Trade Desk scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform the market.
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