In This Article:
Outbrain Inc. OB will report fourth-quarter 2024 results on Feb. 27, before market open.
See Zacks Earnings Calendar to stay ahead of market-making news.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $68.3 million, suggesting 7.1% growth from the year-ago quarter’s actual. The consensus mark for this quarter is pegged at breakeven, whereas it generated earnings of 9 cents per share a year ago. One estimate for the fourth quarter of 2024 moved south in the past 60 days versus no northward revision.
Image Source: Zacks Investment Research
The company has an impressive earnings surprise history. It beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 144.6%.
Outbrain Inc. Price, Consensus and EPS Surprise
Outbrain Inc. price-consensus-eps-surprise-chart | Outbrain Inc. Quote
Outbrain’s Chances of Q4 Earnings Beat Low
Our proven model does not conclusively predict an earnings beat for OB this time around. 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Outbrain has an Earnings ESP of 0.00% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Media Owner Partnerships to Have Been OB’s Drivers in Q4
In the third quarter of 2024, the company renewed agreements with vital publishing partners, including Huffington Post and Meteo in France. OB secured business partnerships with competitors and launched partners, including Sports One Germany, Reuters and Newsweek in Japan.
These relationships ensure a steady base of premium exclusive inventory while providing the company with contextual and engagement data that boost its performance. Therefore, we expect the continued focus on strengthening premium media owner partnerships to have benefited Outbrain’s top line.
Outbrain’s Stock Looks Cheap
OB shares have jumped 46.3% in a year. It has underperformed the 58.3% rally of its industry but outperformed the 19.1% rise of the Zacks S&P 500 composite. It has also outperformed its industry peers, Cardlytics, Inc. CDLX and ECARX Holdings Inc. ECX. CDLX has lost 62% and ECX has fallen 28% over the same period.
One-Year Price Performance
Image Source: Zacks Investment Research
The OB stock is looking cheap and is currently trading at a trailing 12-month price-to-earnings ratio of 15.7X, well below the industry’s 42.1X.