Insurance customer acquisition platform MediaAlpha (NYSE: MAX) will be announcing earnings results this Wednesday after the bell. Here’s what to look for.
MediaAlpha beat analysts’ revenue expectations last quarter, reporting revenues of $316.9 million, up 25.9% year on year. It was a satisfactory quarter for the company, with revenue guidance for next quarter beating analysts’ expectations but a significant miss of analysts’ EPS estimates.
Is MediaAlpha a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MediaAlpha’s revenue to grow 14.4% year on year, slowing from the 18.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MediaAlpha has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at MediaAlpha’s peers in the media & entertainment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Omnicom Group delivered year-on-year revenue growth of 59.1%, beating analysts’ expectations by 4.3%, and Stride reported revenues up 3%, topping estimates by 3.8%. Omnicom Group’s stock price was unchanged after the resultswhile Stride was down 3.2%.
Read our full analysis of Omnicom Group’s results here and Stride’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 3.9% on average over the last month. MediaAlpha is up 29.2% during the same time and is heading into earnings with an average analyst price target of $14.50 (compared to the current share price of $11.89).
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