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What's in Store for The Rubicon Project (RUBI) Q2 Earnings?

Zacks Equity Research

The Rubicon Project RUBI is set to report second-quarter 2019 results on Jul 31.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 63.74%.

In the last reported quarter, Rubicon reported loss of 14 cents per share, much narrower than the Zacks Consensus Estimate of a loss of 19 cents.

Revenues increased 30% year over year to $32.4 million, which also beat the consensus mark of $32 million.

For second-quarter 2019, Rubicon Project expects revenues to grow roughly 20-25%. Moreover, adjusted EBITDA is expected to be slightly positive.

The Rubicon Project, Inc. Price and EPS Surprise

The Rubicon Project, Inc. Price and EPS Surprise

The Rubicon Project, Inc. price-eps-surprise | The Rubicon Project, Inc. Quote


The Zacks Consensus Estimate for revenues is $35.7 million, which indicates growth of almost 24.4% from the year-ago quarter’s reported figure.

Moreover, the consensus mark for earnings is pegged at a loss of 13 cents, which has been stable over the past 30 days.

Let’s see how things are shaping up prior to this announcement.

Key Factors to Consider

Rubicon Project’s top line is expected to benefit from momentum in mobile and video revenues. While mobile revenues jumped 63% year over year and accounted for 53% of total revenues in the first quarter, video revenues almost doubled.

The strong demand for video advertising inventory, owing to higher engagement and ROIs, is a major growth driver for Rubicon Project. The company’s wide range of video offerings are expected to significantly contribute to top-line growth in the to-be-reported quarter.

Moreover, collaborations with the likes of The Trade Desk, DigiTrust and LiveRamp’s tools are likely to reduce the company’s dependence on cookies and improve privacy control of users.

Further, the launch of Prebid-based Demand Manager in May is expected to attract more customers, thereby driving the top line.

However, decreasing CPM is likely to hurt top-line growth modestly in the to-be-reported 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.

Rubicon Project has a Zacks Rank #2 but 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.

Stocks With Favorable Combination

Here are some stocks you may want to consider, as our model shows these have the right combination of elements to post an earnings beat.

CGI Group GIB has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zendesk ZEN has an Earnings ESP of +7.84% and a Zacks Rank #2.

CACI International CACI has an Earnings ESP of +4.02% and a Zacks Rank #2.


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