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Earnings: 3 Hot Stocks to Watch This Week

By Daniel Sparks – May 6, 2019 at 7:31AM

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Two well-known companies and one lesser-known, fast-growing tech stock may turn heads this week.

As earnings season continues, New York Times (NYT -2.58%), Roku (ROKU -1.66%), and Telaria (TLRA) are all companies worth watching this week. All three of these companies have seen their stocks surge this year, rising 51%, 112%, and 173% year to date, respectively.

Ahead of these companies' quarterly results, here's a quick earnings preview for each.

A man riding in a cab while looking at his smartphone

Image source: Getty Images.

New York Times

Investors have been impressed by New York Times' strong growth in digital subscribers recently. This was especially the case in Q4, when the company added 265,000 new digital subscribers -- a huge jump from the 203,000 it added in Q3. 

For the news company's first quarter, analysts expect adjusted earnings per share of $0.10 on revenue of $436 million. That compares with adjusted earnings per share and revenue of $0.17 and $414 million in the year-ago quarter, respectively. 

New York Times' first-quarter results will be released before the market opens on Wednesday, May 8. 

Roku

Streaming-TV platform Roku has been firing on all cylinders recently, with total 2018 revenue surging 45% year over year to $743 million, driven primarily by an 85% increase in platform revenue. In addition, gross profit dollars during the year were up 66% year over year, rising to $332 million.

Strong results were particularly pronounced in Roku's fourth quarter, when total net revenue increased 46% year over year to $276 million and earnings per share of $0.05 easily beat analysts' average forecast for $0.03. 

For Roku's first quarter, analysts expect revenue of $192 million and a loss per share of $0.24. These results compare with revenue and a loss per share of $137 million and $0.07 in the first quarter of 2018, respectively.

Roku will report its first-quarter results after the market closes on May 8.

Telaria

Telaria is a much smaller company than these two, with a $340 million market capitalization. But its unique positioning in the ad tech market and its impressive business momentum make it a stock worth watching.

The company provides a video management platform to premium connected-TV publishers, including Hulu, Sling TV, and others, helping them manage and optimize their digital ad inventory programmatically and directly. Telaria sold its demand-side platform and rebranded its business in 2017, moving to build a better long-term competitive advantage and directly align its interests with the sell-side (i.e., publishers) of the programmatic ad business while doubling down on the fast-growing connected-TV market.

Capturing management's confidence in the company's future, Telaria's board authorized an 18-month, $20 million share repurchase program in early October of last year, and management exhausted the program within three months. Even more, Telaria spent an additional $3.5 million purchasing shares outside its repurchase program. 

On average, analysts expect Telaria's first-quarter revenue to rise 23% year over year to $11.8 million. The consensus forecast for its earnings per share is a loss of $0.10, compared with a loss of $0.12 in the year-ago quarter.

Telaria will report its first-quarter results before the market opens on May 9.

Daniel Sparks owns shares of Telaria. The Motley Fool recommends Roku and The New York Times. The Motley Fool has a disclosure policy.

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Stocks Mentioned

The New York Times Company Stock Quote
The New York Times Company
NYT
$27.97 (-2.58%) $0.74
Roku Stock Quote
Roku
ROKU
$59.88 (-1.66%) $-1.01
Telaria Stock Quote
Telaria
TLRA

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