Digital media company Ziff Davis (NASDAQ:ZD) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Ziff Davis missed analysts’ revenue expectations last quarter, reporting revenues of $406.7 million, down 1.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ revenue estimates.
Is Ziff Davis a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ziff Davis’s revenue to decline 12.6% year on year, a reversal from the 4.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ziff Davis has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ziff Davis’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Stride delivered year-on-year revenue growth of 2.7%, meeting analysts’ expectations, and Sinclair reported revenues up 4%, topping estimates by 2%. Stride traded up 2.8% following the results while Sinclair was down 2.4%.
Read our full analysis of Stride’s results here and Sinclair’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 11% on average over the last month. Ziff Davis is up 7.3% during the same time and is heading into earnings with an average analyst price target of $45.57 (compared to the current share price of $45.80).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.