Trade Desk (NASDAQ:TTD) Posts Quarterly Earnings Results, Beats Expectations By $0.29 EPS

Key Points

• Trade Desk beat Q3 expectations: Adjusted EPS was $0.33 versus $0.04 expected, while revenue of $735.97 million topped the $650.93 million consensus.
• Management forecast Q4 revenue of $755 million, above analysts’ $692.3 million estimate, bolstering hopes that the business is regaining momentum.
• Despite the results and outlook, analysts remain cautious amid slowing growth and competition; MarketBeat reported a consensus “Reduce” rating and an $18.16 average price target.

Trade Desk (NASDAQ:TTD - Get Free Report) posted its earnings results on Monday. The technology company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.04 by $0.29, FiscalAI reports. Trade Desk had a net margin of 13.61% and a return on equity of 16.09%. The company had revenue of $735.97 million during the quarter, compared to the consensus estimate of $650.93 million.

Trade Desk Stock Performance

NASDAQ:TTD traded up $2.00 on Monday, hitting $14.93. The stock had a trading volume of 94,365,762 shares, compared to its average volume of 20,209,564. The stock has a market cap of $7.02 billion, a P/E ratio of 17.77, a price-to-earnings-growth ratio of 1.40 and a beta of 0.98. Trade Desk has a 1 year low of $11.62 and a 1 year high of $45.50. The firm's fifty day simple moving average is $13.06 and its two-hundred day simple moving average is $19.62.

Key Trade Desk News

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: For fiscal Q3, The Trade Desk reported earnings of $0.33 per share, versus analysts’ $0.04 estimate, and revenue of $735.97 million, ahead of the $650.93 million consensus. The strong beat helped fuel optimism that the business may be regaining momentum. The Trade Desk Stock Soars on Solid Q3 Print as Turnaround Takes Shape
• Positive Sentiment: Management forecast Q4 revenue of $755 million, well above the $692.3 million analyst estimate. That outlook suggests business is holding up better than the market expected. Why The Trade Desk Stock Skyrocketed Today
• Neutral Sentiment: Coverage also pointed to renewed investor hope following the return of co-founder and CTO Jeffrey Green. Separately, the company granted Green options covering 7 million shares; the grant is not evidence of an open-market purchase or sale. Trade Desk Handed CEO Jeffrey Green Options on 7 Million Shares Weeks Before Tonight’s Earnings
• Negative Sentiment: Despite the upbeat report, investors may remain cautious: TTD has faced slowing growth and stronger competition, and analysts had expressed skepticism about whether one quarter could reverse its prolonged downturn. Trade Desk’s ‘Lost Year’ Won’t Be Rescued by Earnings, Say Analysts

Analysts Set New Price Targets

A number of equities analysts have issued reports on TTD shares. Robert W. Baird set a $9.00 price target on Trade Desk and gave the company a "neutral" rating in a research note on Friday, August 7th. Rosenblatt Securities lowered their price objective on Trade Desk from $24.00 to $12.00 and set a "neutral" rating for the company in a research note on Friday, August 7th. Scotiabank set a $12.00 target price on Trade Desk and gave the company a "sector perform" rating in a report on Friday, August 7th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Trade Desk in a research report on Friday, September 11th. Finally, Wall Street Zen cut Trade Desk from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. Four research analysts have rated the stock with a Buy rating, twenty-six have given a Hold rating and nine have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $18.16.

Trade Desk Company Profile

The Trade Desk, Inc provides a technology platform that helps advertisers and advertising agencies plan, buy, and measure digital advertising. Its self-service platform uses automated, data-driven tools to help clients purchase advertising inventory across channels such as connected TV, mobile, audio, and display.

The company also offers tools for campaign management, audience targeting, measurement, and access to data and advertising inventory. Its platform is designed to help clients manage campaigns across multiple media channels and publishers.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk serves clients in markets around the world.

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