Viant Technology Inc. Just Reported A Surprise Profit And Analysts Updated Their Estimates

Explore Viant Technology's Fair Values from the Community and select yours

There's been a major selloff in Viant Technology Inc. (NASDAQ:DSP) shares in the week since it released its second-quarter report, with the stock down 27% to US$9.92. Although revenues of US$78m were in line with analyst expectations, Viant Technology surprised on the earnings front, with an unexpected (statutory) profit of US$0.02 per share a nice improvement on the losses that the analystsforecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the eight analysts covering Viant Technology are now predicting revenues of US$333.0m in 2025. If met, this would reflect a modest 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to US$0.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$338.2m and earnings per share (EPS) of US$0.17 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Viant Technology

The average price target fell 11% to US$19.50, with reduced earnings forecasts clearly tied to a lower valuation estimate. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Viant Technology analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$15.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Viant Technology shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.3% growth on an annualised basis. That is in line with its 12% 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 13% per year. So it's pretty clear that Viant Technology is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Viant Technology. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Viant Technology's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Viant Technology. Long-term earnings power is much more important than next year's profits. We have forecasts for Viant Technology going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Viant Technology , and understanding it should be part of your investment process.

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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.