Ad verification company Integral Ad Science (NASDAQ: IAS) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Integral Ad Science missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $133.5 million, up 11% year on year. It was an ok quarter for the company, with revenue guidance for next quarter in line with analysts’ expectations.
Is Integral Ad Science a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Integral Ad Science’s revenue to grow 11% year on year to $149.1 million, slowing from the 14.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 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. Integral Ad Science has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.4% on average.
Looking at Integral Ad Science’s peers in the advertising software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 49.6%, beating analysts’ expectations by 6.7%, and AppLovin reported revenues up 44%, topping estimates by 8.6%. Zeta traded down 13.8% following the results while AppLovin was up 24.1%.
Read our full analysis of Zeta’s results here and AppLovin’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the advertising software stocks have shown solid performance, the group has generally underperformed, with share prices down 6% on average over the last month. Integral Ad Science is down 1.9% during the same time and is heading into earnings with an average analyst price target of $14.74 (compared to the current share price of $10.11).
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