As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at advertising & marketing services stocks, starting with QuinStreet (NASDAQ: QNST).
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a satisfactory Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 2.4% on average since the latest earnings results.
QuinStreet (NASDAQ: QNST)
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
QuinStreet reported revenues of $262.1 million, up 32.1% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with EPS in line with analysts’ estimates.
QuinStreet achieved the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $16.18.
Is now the time to buy QuinStreet? Access our full analysis of the earnings results here, it’s free.
Best Q2: Liberty Broadband (NASDAQ: LBRDK)
Operating across the United States, Liberty Broadband (NASDAQ: LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Liberty Broadband reported revenues of $261 million, up 6.1% year on year, outperforming analysts’ expectations by 3.7%. The business had an exceptional quarter.
Liberty Broadband achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $60.46.
Is now the time to buy Liberty Broadband? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Ibotta (NYSE: IBTA)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Ibotta reported revenues of $86.03 million, down 2.2% year on year, falling short of analysts’ expectations by 5%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
Ibotta delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 19.3% since the results and currently trades at $27.51.
Read our full analysis of Ibotta’s results here.
Omnicom Group (NYSE: OMC)
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Omnicom Group reported revenues of $4.02 billion, up 4.2% year on year. This print topped analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter as it also produced organic revenue in line with analysts’ estimates.
The stock is up 9.7% since reporting and currently trades at $77.70.
Read our full, actionable report on Omnicom Group here, it’s free.
Magnite (NASDAQ: MGNI)
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Magnite reported revenues of $173.3 million, up 6.4% year on year. This result came in 2.2% below analysts' expectations. In spite of that, it was a satisfactory quarter as it put up a beat of analysts’ EPS estimates.
The stock is up 7.9% since reporting and currently trades at $24.23.
Read our full, actionable report on Magnite here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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