The Trade Desk, Inc. Just Recorded A 9.9% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders of The Trade Desk, Inc. (NASDAQ:TTD) will be pleased this week, given that the stock price is up 20% to US$99.30 following its latest second-quarter results. The result was positive overall - although revenues of US$585m were in line with what the analysts predicted, Trade Desk surprised by delivering a statutory profit of US$0.17 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Trade Desk

Following the latest results, Trade Desk's 31 analysts are now forecasting revenues of US$2.45b in 2024. This would be a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 41% to US$0.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.42b and earnings per share (EPS) of US$0.73 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$105. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Trade Desk at US$120 per share, while the most bearish prices it at US$39.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.2% per year. So although Trade Desk is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$105, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Trade Desk. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Trade Desk analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.