Digital advertising platform Magnite (NASDAQ:MGNI) will be reporting results tomorrow afternoon. Here’s what to expect.
Magnite missed analysts’ revenue expectations by 6.1% last quarter, reporting revenues of $194 million, up 3.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Magnite a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Magnite’s revenue to grow 7.1% year on year to $159.9 million, slowing from the 14.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Magnite has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 7.7% on average.
Looking at Magnite’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Interpublic Group’s revenues decreased 8.5% year on year, meeting analysts’ expectations, and Omnicom Group reported revenues up 1.6%, falling short of estimates by 0.6%. Interpublic Group traded up 2.7% following the results while Omnicom Group was down 7.3%.
Read our full analysis of Interpublic Group’s results here and Omnicom Group’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 11.2% on average over the last month. Magnite is up 33.9% during the same time and is heading into earnings with an average analyst price target of $19.19 (compared to the current share price of $12.25).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.