Perion Network PERI is scheduled to unveil its performance for the second quarter of 2024 on Jul 31.
Revenue Expectations
Anticipating revenues of $106-$108 million, PERI foresees a quarterly dip. The Zacks Consensus Estimate settles at $106.98 million, indicating a 40.06% decline from the corresponding period last year.
The consensus prediction for Q2 2024 earnings stands at 22 cents per share, unchanged over the last month.
Throughout the last four quarters, Perion outperformed the Zacks Consensus Estimate in earnings, averaging a 9.02% positive deviation.
Exploring Price and EPS Surprises
Perion Network Ltd price-eps-surprise | Perion Network Ltd Quote
Perion’s Q2 performance is expected to benefit from its presence in the digital advertising realm, leveraging its diverse product lineup across various advertising channels such as search, Connected TV (CTV), and retail media.
Factors at Play
The surge in Perion’s retail media solutions, with a remarkable 134% year-over-year growth in the first quarter of 2024, is likely to persist, driven by both organic expansion and the assimilation of digital out-of-home advertising solutions.
CTV advertising experienced a substantial 108% growth in Q1 2024, with an expected continuation as more clients embrace Perion’s impactful CTV solutions.
Additionally, the strategic acquisition of HiveStack enhanced Perion’s capabilities in the programmatic digital out-of-home advertising sector, which registered a 25% year-over-year growth.
The deployment of SORT 2.0 and Wave AI-based dynamic audio technology is projected to escalate engagement and sales figures.
Conversely, despite fluctuations in Microsoft’s advertising strategies, Perion’s search activity expanded by 26% year-over-year in Q1 2024.
Collaboration with Microsoft is expected to further elevate Perion’s revenue, despite an anticipated decline in search advertising income due to recent alterations in Microsoft Bing’s pricing and distribution mechanisms.
Evaluating Our Model
According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat, which is not the current scenario.
Perion Network holds an Earnings ESP of +0.00% with a Zacks Rank #4 (Sell) presently.
Stocks to Watch
Highlighted are companies with the potential for positive earnings outcomes:
Apple AAPL has an Earnings ESP of +3.05% with a current Zacks Rank of #2.
Apple is scheduled to disclose its Q3 fiscal 2024 results on Aug 1, having recorded a 13.2% rise in its shares this year.
Cognizant Technology Solutions CTSH displays an Earnings ESP of +0.09% coupled with a Zacks Rank #2.
CTSH intends to report Q2 2024 results on Jul 31, despite a 1.2% decline in its shares this year.
Monitor upcoming earnings announcements through the Zacks Earnings Calendar.
