Magnite MGNI is slated to report first-quarter 2024 results on May 8.
The Zacks Consensus Estimate for revenues is pegged at $123.77 million, indicating a decrease of 4.91% from the year-ago quarter’s levels.
The Zacks Consensus Estimate is pegged at a loss of 2 cents per share, which has decreased from earnings of 1 cent in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 175.5%.
Let’s see how things have shaped prior to this announcement.
Magnite, Inc. Price and EPS Surprise
Magnite, Inc. price-eps-surprise | Magnite, Inc. Quote
Factors to Consider
Magnite’s first-quarter performance is expected to have suffered from increasing competition and seasonality in the business.
Declining momentum across all formats and device types, including connected Television (CTV), DV+, mobile, non-CTV video and display, is likely to have affected MGNI’s performance.
In the fourth quarter of 2023, Magnite partnered with Mediaocean to bring deeper automation and greater supply path efficiency to the latter’s Prisma buyers for CTV and online video. This is expected to have aided the company’s top-line growth.
In the last reported quarter, MGNI’s CTV revenues, excluding TAC, declined 2% year over year to $63.5 million. The company expects revenues between $49 million and $51 million in the first quarter.
CTV revenues suffered in the previous quarter, mainly due to mix shifts and managed service softness trends in the streaming market. This trend is likely to have continued in the to-be-reported quarter.
Contributions from a robust partner base, including the likes of Sling, Hulu, Pluto, Tubi, Discovery and Fox and device manufacturing companies like Roku and Samsung, are expected to have contributed to MGNI’s revenues in the quarter under review.
What Our Model Indicates
According to 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.
Magnite has an Earnings ESP of -166.67% and a Zacks Rank #3 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 some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
NVIDIA NVDA has an Earnings ESP of +2.50% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is scheduled to release first-quarter 2024 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, indicating growth of 403.67% from the year-ago quarter’s reported figure.
Arista Networks ANET has an Earnings ESP of +3.76% and carries a Zacks Rank #2 at present.
ANET is set to report first-quarter 2024 results on May 7. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.74 per share, indicating a rise of 21.68% from the year-ago quarter’s reported figure.
Docebo DCBO has an Earnings ESP of +8.00% and a Zacks Rank #3 at present.
Docebo is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 17 cents per share, indicating growth of 88.89% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
