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US$92.00 - That's What Analysts Think The Trade Desk, Inc. (NASDAQ:TTD) Is Worth After These Results

Shareholders will be ecstatic, with their stake up 25% over the past week following The Trade Desk, Inc.'s (NASDAQ:TTD) latest annual results. Trade Desk reported US$1.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.36 beat expectations, being 2.3% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Trade Desk after the latest results.

View our latest analysis for Trade Desk

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earnings-and-revenue-growth

Following the latest results, Trade Desk's 34 analysts are now forecasting revenues of US$2.38b in 2024. This would be a huge 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 76% to US$0.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.32b and earnings per share (EPS) of US$0.59 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

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With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to US$92.00per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Trade Desk analyst has a price target of US$110 per share, while the most pessimistic values it at US$30.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Trade Desk'shistorical trends, as the 22% annualised revenue growth to the end of 2024 is roughly in line with the 28% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% annually. So although Trade Desk is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Trade Desk's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Trade Desk going out to 2026, and you can see them free on our platform here..

We also provide an overview of the Trade Desk Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.