QuinStreet (QNST) Q3 earnings: what to expect

What happened

QuinStreet will report its Q3 earnings on Wednesday after the market closes. Last quarter, the company beat analysts' revenue expectations with $373.9 million in revenue, up 42.7% year on year. This quarter, the market expects revenue to grow 31% year on year.

Confirmed

Global impact / market context

A 31% expected revenue growth would be much faster than the 2.4% growth in the same quarter last year, which means the business may be speeding up. Because QuinStreet rarely misses revenue estimates, a miss could make investors question whether that faster growth is real.

Analyst inference

Other advertising and marketing services companies have already reported strong Q3 results. Ibotta beat revenue expectations by 10.3% and MediaAlpha by 7.2%, and MediaAlpha shares traded up 20.6% after its results. That could set a higher bar for QuinStreet's report.

Analyst inference

What to watch

1. Whether QuinStreet reports revenue growth of about 31% year on year, the rate the market expects this quarter. Confirmed
2. Whether QuinStreet beats revenue estimates again, since the article says it rarely misses Wall Street's revenue estimates. Analyst inference
3. How QuinStreet shares react after the report, given that peer MediaAlpha shares traded up 20.6% after its results. Analyst inference

Evidence

• stockstory.org