The Trade Desk Q2 2023 Earnings Preview: Benefits from an upticking digital ad market
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Digital marketing company The Trade Desk (NASDAQ: TTD) is set to report higher earnings in its second-quarter announcement, scheduled on Wednesday after market closes.
TTD is expected to post a quarterly EPS of $0.26 (+30.0% Y/Y) with revenue estimated to be $454.97M (+20.7% Y/Y).
As border economic concerns look to be subsiding, with US Federal Reserve Chair Jerome Powell commenting last month that the central bank's staff no longer forecasts a recession in the country, the advertising industry appears to have been reignited.
Meta (META) and Google-parent Alphabet (GOOGL) have both reported robust increases in advertising revenues in their recent earnings reports. A similar trend is anticipated for The Trade Desk.
"The company (NASDAQ:TTD) operates in a gigantic total addressable market and several trends are very favorable to the company," said SA analyst From Growth To Value in a recent analysis.
However, with TTD stock having ballooned 90.5% since the start of the year, another SA analyst Michael Wiggins De Oliveira finds the stock to be already fully priced, with its multiple having increased significantly since the start of 2023.
"I am not convinced there is much more upside left in The Trade Desk, Inc. for investors at the current price," Michael Wiggins added.
During the reporting quarter, TTD appointed Laura Schenkein to the post of chief financial officer. The company also joined the Nasdaq-100 Index in July.
TTD was also recently upgraded to Buy from Neutral by BTIG, holding a price target of $103, with analysts seeing an improving fundamental setup which may lead to stronger results this year, and faster growth with margin improvement in future periods.
Wall Street has rated the stock BUY with a score of 3.82, however, SA analysts and Quant rate the stock as HOLD giving scores of 3.14 and 3.48, respectively.
Over the last 2 years, TTD has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time.
Over the last 3 months, EPS estimates have seen 8 upward revisions and 4 downward. Revenue estimates have seen 18 upward revisions and 0 downward.
Recent earnings Analysis from our contributors:The Trade Desk Stock: What To Expect From Q2 Earnings?The Trade Desk Q2 Earnings Preview: Assessing Its Stretched Valuation