The Trade Desk (TTD) to Report Q4 Earnings: What's in Store?

The Trade Desk (TTD Quick QuoteTTD - Free Report) is set to release its fourth-quarter 2023 results on Feb 15.

For the fourth quarter, the company expects revenues of at least $580 million, indicating growth of 18% year over year.

The Zacks Consensus Estimate for the top line is currently pegged at $582.19 million, suggesting an 18.64% increase year over year.

The consensus mark for earnings is estimated to be 42 cents per share, indicating 10.53% growth from the figure reported in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 25.28% on average.

Let’s see how things have shaped up for this announcement:

Factors to Consider

The Trade Desk’s top-line growth in the fourth quarter is expected to have been backed by a significant increase in digital spending in key areas such as Connected TV (CTV) and retail media.

TTD is expanding footprint among marketers who are increasingly spending more on premium video like CTV. In the third quarter, video, which includes CTV, represented a mid-40s percentage share of The Trade Desk's business and continues to grow as a percentage of its mix.

Improving ad spending environment bodes well for The Trade Desk. The company is expected to have benefited from its expanding footprint in international markets across Europe and Asia.

The Trade Desk’s expanding partner base, which includes the likes of Walmart, Target, Albertsons and Instacart, has fueled the expansion of the company’s addressable market in the United States. This is expected to have driven top-line growth in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

The Trade Desk has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Inseego (INSG Quick QuoteINSG - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inseego shares have gained 18.7% year to date. INSG is set to report its fourth-quarter 2023 results on Feb 21.

Bruker (BRKR Quick QuoteBRKR - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank of 2, at present.

Bruker shares have declined 4.1% year to date. BRKR is set to report its fourth-quarter 2023 results on Feb 13.

Akamai Technologies (AKAM Quick QuoteAKAM - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3.

Akamai shares have gained 8.4% year to date. AKAM is set to report its fourth-quarter 2023 results on Feb 13.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.