Cash-back rewards platform Ibotta (NYSE:IBTA) will be reporting earnings this Monday afternoon. Here’s what to look for.
Ibotta beat analysts’ revenue expectations last quarter, reporting revenues of $82.48 million, down 2.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates. It reported 70.69 million total redemptions, down 14.6% year on year.
Is Ibotta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ibotta’s revenue to decline 1.3% year on year, in line with the 2.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ibotta has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ibotta’s peers in the media & entertainment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MediaAlpha delivered year-on-year revenue growth of 25.9%, beating analysts’ expectations by 4.2%, and Omnicom Group reported revenues up 63.4%, topping estimates by 1.9%. MediaAlpha traded down 1.9% following the results while Omnicom Group was also down 4.2%.
Read our full analysis of MediaAlpha’s results here and Omnicom Group’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 2.6% on average over the last month. Ibotta is down 27.4% during the same time and is heading into earnings with an average analyst price target of $33.43 (compared to the current share price of $24).
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