The Trade Desk stock heads higher after upbeat earnings, outlook

Shares of The Trade Desk were up more than 3% in premarket trading Wednesday after the advertising-technology company exceeded expectations with its latest financial results and delivered an upbeat outlook. The company generated fourth-quarter net income of $8.0 million, or 2 cents a share, compared with $151.9 million, or 31 cents a share, in the year-prior quarter. On an adjusted basis, The Trade Desk earned 42 cents a share, up from 37 cents a share a year earlier and ahead of the FactSet consensus, which was for 27 cents a share. Revenue rose to $395.6 million from $319.9 million and exceeded the FactSet consensus that was for $389.2 million. For the first quarter, The Trade Desk anticipates revenue of at least $303 million and adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of about $91 million. Analysts tracked by FactSet had been looking for $287 million in revenue and $81 million in adjusted Ebitda. The stock has declined about 28% over the past three months as the S&P 500
SPX,
+1.58%
has slipped roughly 5%.