Viant Technology Shares Plunge After Earnings Report
Viant Technology Inc. (NASDAQ:DSP) experienced a significant selloff, with shares plummeting 27% to $9.92 following its second-quarter earnings release. While the company reported revenues of $78 million, aligning with analyst expectations, it managed a surprising statutory profit of $0.02 per share, improving on forecasted losses.
Despite meeting revenue targets, the earnings results led to cautious sentiment among analysts, prompting them to adjust their forecasts. For 2025, eight analysts now predict revenues of $333 million, a modest 4.6% increase from the past year. However, earnings per share (EPS) forecasts were slightly downgraded to $0.16, down from an earlier estimate of $0.17.
The average price target for Viant Technology fell 11% to $19.50, reflecting the reduced earnings estimates. Analysts expressed varied views on the company’s future, with targets ranging from a conservative $15 to an optimistic $26, though the average suggests limited potential for extreme outcomes.
Viant’s expected annual revenue growth of 9.3% leading up to 2025 falls below the expected 13% growth for other companies in the same industry. This slower growth, combined with reduced EPS estimates, raises concerns about potential headwinds for Viant Technology.
While revenues are tracking in line with expectations, the downward adjustment in earnings forecasts signals growing skepticism regarding the company’s intrinsic value. Investors are advised to consider long-term earning capabilities rather than focus solely on short-term profits. For those managing stock portfolios, caution is warranted, as one particular warning sign about Viant has been identified.
For more insights and detailed analysis on Viant Technology, visit our platform. This article serves as a general commentary based on historical data and analyst projections and is not intended as financial advice.
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