Magnite (NASDAQ:MGNI) Announces Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Magnite (NASDAQ:MGNI) announced its quarterly earnings data on Wednesday. The company reported $0.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01), FiscalAI reports. Magnite had a net margin of 8.25% and a return on equity of 8.74%. Magnite’s revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.34 earnings per share.

Here are the key takeaways from Magnite’s conference call:

• Q4 showed a sharp acceleration in streaming: CTV contribution ex?TAC grew 32% ex?political, CTV reached 48% of Q4 contribution ex?TAC and is now larger than DV+, with management guiding CTV to surpass 50% in Q1 — a major structural tailwind for the company.
• DV+ softened — Q4 DV+ contribution ex?TAC was down 1% (up 4% ex?political) and management expects TV+ (DV+) to decline 6%–8% in Q1 as budgets reallocate into CTV, pressuring that legacy segment near term.
• Strong profitability and capital return plans: Q4 Adjusted EBITDA was $84M (43% margin), full?year Adjusted EBITDA +18%, cash $553M, converts to be paid at maturity, and a new $200M two?year share repurchase authorization with a target to return ~50% of free cash flow to buybacks.
• Technical leadership in an AI/agentic future: Magnite embedded an AdCP seller agent in SpringServe and ran an industry?first agent?to?agent campaign, arguing AI will increase reliance on scaled sell?side infrastructure and benefit Magnite’s platform and data assets.
• Regulatory upside remains an uncertain catalyst: management expects potential Google ad?tech remedies could reallocate share (~$50M contribution ex?TAC per 1% share gain), but timing and outcome are unknown.

Magnite Stock Up 2.3%

Shares of NASDAQ MGNI traded up $0.27 during mid-day trading on Wednesday, reaching $11.97. 3,765,081 shares of the company’s stock were exchanged, compared to its average volume of 2,277,003. Magnite has a twelve month low of $8.22 and a twelve month high of $26.65. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $1.72 billion, a price-to-earnings ratio of 25.43, a PEG ratio of 0.64 and a beta of 2.39. The business has a fifty day simple moving average of $14.46 and a 200 day simple moving average of $17.75.

Insider Transactions at Magnite

In other news, insider Adam Lee Soroca sold 21,529 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $12.00, for a total value of $258,348.00. Following the completion of the transaction, the insider owned 388,425 shares in the company, valued at $4,661,100. This represents a 5.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 3.80% of the company’s stock.

Institutional Trading of Magnite

A number of institutional investors have recently modified their holdings of the company. US Bancorp DE boosted its position in shares of Magnite by 75.8% during the third quarter. US Bancorp DE now owns 1,596 shares of the company’s stock worth $35,000 after buying an additional 688 shares during the period. PNC Financial Services Group Inc. raised its position in Magnite by 45.1% in the 3rd quarter. PNC Financial Services Group Inc. now owns 2,428 shares of the company’s stock valued at $53,000 after buying an additional 755 shares during the last quarter. Smartleaf Asset Management LLC lifted its stake in Magnite by 98.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 3,678 shares of the company’s stock valued at $61,000 after acquiring an additional 1,824 shares in the last quarter. State of Wyoming lifted its stake in Magnite by 159.3% in the 4th quarter. State of Wyoming now owns 4,600 shares of the company’s stock valued at $75,000 after acquiring an additional 2,826 shares in the last quarter. Finally, Johnson Financial Group Inc. acquired a new position in Magnite during the 3rd quarter worth approximately $83,000. 73.40% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MGNI. Rosenblatt Securities reaffirmed a “buy” rating and set a $39.00 price objective on shares of Magnite in a research note on Thursday, November 6th. Weiss Ratings restated a “hold (c)” rating on shares of Magnite in a report on Thursday, January 22nd. Wells Fargo & Company decreased their target price on Magnite from $22.00 to $20.00 and set an “equal weight” rating for the company in a research report on Friday, November 7th. Benchmark reiterated a “buy” rating on shares of Magnite in a research report on Monday, January 12th. Finally, Wall Street Zen cut shares of Magnite from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $27.00.

About Magnite

Magnite, Inc (NASDAQ: MGNI) operates as an independent sell-side advertising platform that enables publishers and digital media owners to monetize their inventory through programmatic advertising. Formed in 2020 through the merger of Rubicon Project and Telaria, Magnite combines technologies for desktop, mobile, connected television (CTV) and digital out-of-home (DOOH) ad exchanges. The company provides an end-to-end solution designed to help media owners optimize yield across open marketplaces, private marketplaces and programmatic guaranteed deals.

At the core of Magnite’s offering is its supply-side platform (SSP), which connects publishers’ ad impressions to demand-side platforms (DSPs) through real-time bidding (RTB).