Core Insights - Reddit Inc. is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates by an average of 297.00% in the last two quarters [1][2]. Earnings Performance - For the last reported quarter, Reddit Inc. achieved earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, resulting in a surprise of 550.00% [2]. - In the previous quarter, the company was expected to report earnings of $0.25 per share but delivered $0.36 per share, yielding a surprise of 44.00% [2]. Earnings Estimates and Predictions - Recent estimates for Reddit Inc. have been trending upward, with a positive Earnings ESP of +35.71%, indicating increased analyst optimism regarding the company's earnings prospects [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8]. Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate [7]. - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [9].
Will Reddit Inc. (RDDT) Beat Estimates Again in Its Next Earnings Report?