What's in Store for The Rubicon Project (RUBI) Q1 Earnings?

The Rubicon Project RUBI is set to report first-quarter 2020 results on May 6.

For the quarter, the company expects revenues between $37 million and $38 million. The Zacks Consensus Estimate for revenues is pegged at $35.2 million, indicating growth of 8.6% from the year-ago reported figure.

Moreover, the consensus mark for loss has narrowed a couple of cents to 4 cents per share over the past 30 days. The company reported loss of 14 cents in the year-ago quarter.

Notably, Rubicon Project’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 42.1%.

The Rubicon Project, Inc. Price and EPS Surprise

The Rubicon Project, Inc. Price and EPS Surprise

The Rubicon Project, Inc. price-eps-surprise | The Rubicon Project, Inc. Quote

 

Let’s see how things are shaping up for this announcement.

Factors to Consider

Rubicon Project’s first-quarter top line is expected to have negatively impacted by lower ad spending due to the coronavirus outbreak.

Nevertheless, strong demand for video advertising inventory owing to higher engagement and ROIs is a major driver for Rubicon Project. The company’s wide range of video offerings is likely to have driven its top line in the to-be-reported despite trimmed ad budgets.

Further, increased adoption of prebid-based Demand Manager might have aided the top line in the period under review.

Moreover, as more and more people stayed at home amid lockdowns, Connected TV (CTV) usage jumped significantly. This might have been a boon for Rubicon Project due to low probability of cuts in CTV ad budget in the to-be-reported quarter.

Additionally, continued gains from Rubicon Project’s network efficiency initiative are expected to have contributed to profitability in the quarter to be reported.

However, acquisition expenses related to Telaria are expected to have weighed on profitability.

Key Development in Q1

During the quarter, Bustle Digital Group (BDG) selected Rubicon Project as its preferred partner to execute private marketplace deals (PMPs) with programmatic media buyers.

What Our Model Suggests

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.

Rubicon Project has an Earnings ESP of 0.00% and a Zacks Rank #3. 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 companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Wayfair W has an Earnings ESP of +1.69% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify SHOP has an Earnings ESP of +23.41% and is #2 Ranked player.

Activision Blizzard ATVI has an Earnings ESP of +10.39% and a Zacks Rank #2.


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