Perion Network PERI is slated to release its second-quarter 2024 results on Jul 31.
For the second quarter, PERI expects revenues of $106-$108 million. The Zacks Consensus Estimate for revenues is pegged at $106.98 million, suggesting a decline of 40.06% from the year-ago quarter’s levels.
The consensus mark for second-quarter 2024 earnings is pegged at 22 cents per share, unchanged in the past 30 days.
Perion’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.02%.
Perion Network Ltd Price and EPS Surprise
Perion Network Ltd price-eps-surprise | Perion Network Ltd Quote
Let’s see how things have shaped up for this announcement.
Factors to Note
Perion’s second-quarter performance is likely to have benefited from its digital advertising industry, driven by its diversified product portfolio across various advertising channels, including search, CTV (Connected TV) and retail media.
Perion’s retail media solutions have shown substantial growth, increasing by 134% year-over-year in the first quarter of 2024. This sector is likely to have continued its positive trajectory, driven by both organic growth and the integration of digital out-of-home advertising solutions.
The Connected TV (CTV) advertising segment experienced a remarkable 108% growth year-over-year in the first quarter of 2024. This trend is expected to have persisted as more customers adopt Perion's high-impact CTV solutions, such as live and dynamic CTV, branded CTV, and pause ads.
The programmatic digital out-of-home advertising sector registered 25% year-over-year growth. This growth is fueled by the strategic acquisition of HiveStack, which enhanced Perion’s capabilities in this area. The increasing adoption of programmatic technologies in out-of-home advertising is likely to have driven further growth.
The introduction of SORT 2.0, an AI-based audience segmentation technology, enhances targeting capabilities for web and CTV, offering privacy-focused targeting to connect with receptive audiences. The Wave AI-based dynamic audio technology, now expanded to new verticals and multi-language capabilities, is expected to have driven engagement and sales.
Despite changes in Microsoft’s MSFT advertising pricing strategies, Perion’s search activity grew by 26% year-over-year in the first quarter of 2024.
The ongoing collaboration and revenue-sharing model with Microsoft is expected to have continued boosting the top line.
However, PERI expects a decline in search advertising revenues in the next quarter due to recent changes in Microsoft Bing’s advertising pricing and mechanisms, including its decision to exclude a number of publishers from its search distribution marketplace.
What Our Model Says
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.
Perion Network has an Earnings ESP of +0.00% and a Zacks Rank #4 (Sell) currently. 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 in their upcoming releases:
Apple AAPL has an Earnings ESP of +3.05% and a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Apple shares have gained 13.2% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions CTSH has an Earnings ESP of +0.09% and a Zacks Rank #2.
Cognizant Technology Solutions’ shares have dropped 1.2% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
