Digital media company Ziff Davis (NASDAQ: ZD) will be reporting results tomorrow afternoon. Here’s what you need to know.
Ziff Davis missed analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $412.8 million, up 5.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates.
Is Ziff Davis a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ziff Davis’s revenue to grow 3% year on year to $324 million, in line with the 2.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.25 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Ziff Davis’s peers in the digital media & content platforms 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 17.8%, beating analysts’ expectations by 3.6%, and IAC reported a revenue decline of 8.6%, falling short of estimates by 29.5%. Stride’s stock price was unchanged after the results, while IAC was down 3.6%.
Read our full analysis of Stride’s results here and IAC’s results here.
There has been positive sentiment among investors in the digital media & content platforms segment, with share prices up 14.2% on average over the last month. Ziff Davis’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $51.71 (compared to the current share price of $31.45).
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