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What's in Store for Perion Network (PERI) in Q3 Earnings?

Zacks Equity Research

Perion Network Ltd. PERI is set to report third-quarter 2019 results on Nov 6.

The Zacks Consensus Estimate for revenues currently stands at $65 million, which indicates growth of 13.7% from the year-ago quarter’s reported figure.

The consensus mark for earnings has remained at 9 cents over the past 30 days. Perion had reported earnings of 8 cents in the year- ago period.

Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 67.9%.

In the last reported quarter, Perion reported adjusted earnings of 11 cent per share that beat the Zacks Consensus Estimate by 8 cents.

Revenues increased 1.6% year over year to $64 million, which also beat the consensus mark of $59 million.

Perion Network Ltd Price and EPS Surprise

Perion Network Ltd Price and EPS Surprise

Perion Network Ltd price-eps-surprise | Perion Network Ltd Quote

Key Factors to Consider       

Perion Network is expected to have benefited from an expanding customer reach aided by AI-driven ads in the to-be-reported quarter.

Moreover, Search segment revenues improved sequentially in the second quarter, a trend that most likely continued in the third quarter owing to strong relationships with clients like Microsoft’s MSFT Bing.

Further, the company’s portfolio strength and offerings, driven by expanding partner base, are expected to have boosted the top line in the third quarter. For instance, Perion’s Digital Branding division, Undertone’s partnership with TV data and measurement company, Alphonson has helped the former to grow its Synchronized Digital Branding advertising solution pipeline by approximately $5 million in just a month since the deal in July.

Further, the company expects an increase in adjusted EBITDA owing to strong partnership and new product collaboration with Microsoft.

Key Q3 Developments

On Sep 26, Perion’s digital branding division, Undertone along with Associated Press secured funding from Regions Bank for AP Top 25 poll, the longest-running college football poll. Undertone's digital advertising expertise, creativity and technology will provide high-impact digital ads of Regions Bank across hundreds of quality publisher sites and apps.

Perion’s digital ad tech subsidiary, MakemeReach announced its partnership with Pinterest on Sep 23. This partnership is aimed at broadening of MakemeReach’s digital advertising ecosystem.

What Our Model Says

According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of a positive earnings surprise.

Perion Network has a Zacks Rank #2 and Earnings ESP of 0.00%, makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies, which, per our model, have the right combination of elements to post an earnings beat this time around:

iHeartMedia Inc. IHRT has an Earnings ESP of +3.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty Broadband LBRDK has an Earnings ESP of +5.75% and a Zacks Rank #2.

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