MediaAlpha reports Wednesday after the bell: what to watch

what happened

Insurance marketing platform MediaAlpha (ticker MAX) will publish its results on Wednesday after the market closes, according to a preview published by stockstory.org.

Last quarter the company posted revenue of $316.9 million, up 25.9% year on year. That beat analyst forecasts, and its guidance for the next quarter also came in above consensus, but earnings per share fell well short of estimates. The market expects revenue in the current quarter to rise 14.4%, compared with 18.3% a year earlier. Analysts have mostly held their estimates over the past 30 days, though MediaAlpha has missed revenue expectations several times over the last two years.

Among peers in media and entertainment, Omnicom Group reported revenue growth of 59.1% and beat forecasts by 4.3%, while Stride posted a 3% rise in revenue and topped estimates by 3.8%. Omnicom's shares were unchanged after its report, and Stride fell 3.2%. Over the past month, the sector's shares rose 3.9% on average, while MediaAlpha gained 29.2%. The average analyst price target stands at $14.50, against a current share price of $11.89.

why it matters

The key question for investors is whether revenue growth holds up despite the expected slowdown and the sharp rise in the stock over the past month, which could amplify the market's reaction. The report concerns one small company, so its effect on the broader market is limited.

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