Criteo CRTO is set to report its third-quarter 2024 results on Oct. 30.

The Zacks Consensus Estimate for third-quarter earnings has been steady at 84 cents per share over the past 30 days, suggesting 18.31% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $266.83 million, indicating an increase of 8.73% from the figure reported in the year-ago quarter.

Criteo’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 26.62%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Let’s see how things have shaped up for the upcoming announcement:

Criteo S.A. Price and EPS Surprise

Criteo S.A. price-eps-surprise | Criteo S.A. Quote

Criteo’s Expanding Clientele to Boost Top Line

CRTO’s extended association with Microsoft into Retail Media Suite to provide its retailers with Microsoft Advertising and to integrate MSFT’s Retail Media content into its platform is expected to have helped expand clientele in the third quarter of 2024. 

CRTO’s two-year agreement with Selfridges to connect customers with exclusive brands and to enhance a customer’s on-site experience by personalizing engagement is expected to have boosted the top line in the third quarter of 2024. 

Criteo’s expanding geographical market presence, including APAC and Latin America, is expected to have benefited the top line in the third quarter of 2024.

Higher Agency Spend to Aid CRTO Results

CRTO’s adaption of multiple ad formats in Retail Media networks for brands, adoption of first-party data-oriented solutions and AI-driven enhancements, are expected to have aided CRTO’s topline by expanding advertising offerings. 

CRTO’s third-quarter 2024 top-line growth is expected to have benefited from an increase in US Agency spending and activated media spending. CRTO’s activated media spend increased 7% year over year to $1 billion in the second quarter of 2024, and the trend is expected to have continued in the to-be-reported quarter.

Criteo’s Commerce Max’s capability to allow closed-loop reporting to improve a buyer’s retail journey is noteworthy and is expected to drive the top line by increasing customer engagement.

CRTO’s commerce format, Klarna, facilitates easy payment in high-demand and high-intent environments for more than 150 million users and is expected to drive active user growth in the third quarter of 2024.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Criteo has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Reddit RDDT has an Earnings ESP of +58.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

RDDT shares have appreciated 57.2% year to date. Reddit is set to report its third-quarter 2024 results on Oct. 29.

Ballard Power Systems BLDP has an Earnings ESP of +8.86% and a Zacks Rank #2 at present. 

Ballard Power Systems shares have declined 57.6% year to date. BLDP is set to report its third-quarter fiscal 2024 results on Nov. 5.
 
Cadence Design Systems CDNS has an Earnings ESP of +0.69% and a Zacks Rank #2 at present. 

CDNS shares have declined 7.8% year to date. Cadence is set to report its third-quarter fiscal 2024 results on Oct. 28.

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