The Trade Desk (TTD) Lags Q2 Earnings Estimates

Core Insights - The Trade Desk reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.42 per share, but showing an increase from $0.39 per share a year ago, resulting in an earnings surprise of -2.38% [1] - The company posted revenues of $694.04 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.40% and increasing from $584.55 million year-over-year [2] - The Trade Desk shares have declined approximately 23.8% year-to-date, contrasting with the S&P 500's gain of 7.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44, with expected revenues of $717.69 million, and for the current fiscal year, the EPS estimate is $1.78 on revenues of $2.86 billion [7] - The estimate revisions trend for The Trade Desk was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Services industry, to which The Trade Desk belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]