Digital Turbine (NASDAQ:APPS) is set to release fourth-quarter fiscal 2019 results on Jun 3.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 87.5%.
In the last reported quarter, earnings of 4 cents per share beat the Zacks Consensus Estimate by a couple of cents. The company had reported loss of a cent in the year-ago quarter.
Revenues grew 34% year over year to $30.4 million and was better than the consensus mark.
Digital Turbine’s mobile device management platform, Ignite, has gained significant traction. In third-quarter fiscal 2019, Ignite was installed on roughly 28 million devices. As of Feb 5, 2019, approximately 230 million devices had Ignite installed, which is a major driver for the company’s advertising revenue growth in the to-be-reported quarter.
Digital Turbine, Inc. Price and EPS Surprise
Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote
Further, renewed partnerships with large U.S. carriers, including Verizon (NYSE:VZ) , AT&T (NYSE:T) Wireless and Cricket Wireless, are a key catalyst. The company’s advertiser base has also expanded with the addition of Netflix (NASDAQ:NFLX) and Microsoft (NASDAQ:MSFT) division LinkedIn (NYSE:LNKD).
Moreover, improving global revenue per device (RPD) indicates solid demand for the company’s ad solutions. Additionally, expanding International partner base is expected to drive the top line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for revenues currently stands at $26.6 million, indicating 26.7% growth from the figure reported in the year-ago quarter.
Moreover, the consensus mark for earnings has remained steady at 2 cents over the past 30 days and suggests growth of 300% from the figure reported in the year-ago quarter.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Digital Turbine has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
A Stock With Favorable Combination
Here is a stock you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat.
Science Applications International (NYSE:SAIC) has an Earnings ESP of +5.97% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.