Opera Limited to Report Q1 Earnings: What's in Store for the Stock?

Opera Limited OPRA is set to report its first-quarter 2025 earnings results on April 28.

The company anticipates first-quarter 2025 revenues between $130 million and $133 million, representing a 29% year-over-year growth. The Zacks Consensus Estimate for the same is pegged at $131.53 million, suggesting growth of 29.12% from the year-ago quarter’s reported figure.

The consensus mark for first-quarter earnings is pegged at 26 cents per share, unchanged over the past 30 days. This projection indicates a significant year-over-year increase of 52.94% from the year-ago quarter’s reported figure.

Opera Limited beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed the remaining one, with the average positive surprise being 17.21%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Opera Limited Sponsored ADR Price and EPS Surprise

 

Opera Limited Sponsored ADR price-eps-surprise | Opera Limited Sponsored ADR Quote

Let’s see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of OPRA’s Q1 Results

Opera Limited’s first-quarter 2025 is expected to have benefited from the continued strength in its advertising business, which grew 38% year-over-year in the fourth quarter of 2024. This growth was driven by strong performance in e-commerce segments, and this momentum is likely to have carried over into the first quarter, supported by performance-based advertising models that attracted higher budgets from advertisers.

Opera Limited is witnessing solid growth in Western markets, particularly across Europe and the U.S., driven by a surge in iOS downloads. This growth is largely attributed to rising user awareness and European regulatory shifts that favor greater browser competition. These factors are likely to have further strengthened the company’s competitive position in the to be reported quarter.

The company's investments in AI technologies, particularly the integration of AI features into new browser versions like Opera R2 and Opera One, has enhanced user experience and engagement. These innovations are likely to have positively impacted user growth and monetization efforts for Opera Limited in the quarter under review.

Opera GX, the company’s gaming browser, continues to be a key growth driver. The company saw 22% year-over-year increase in its user base to 33.9 million monthly active users in the fourth quarter of 2024. This strong user momentum, coupled with the browser’s high monetization potential, is expected to have meaningfully contributed to revenue growth in the first quarter of 2025.

However, rising operational expenses, which were up from 27.1% in the fourth quarter of 2024, could impact overall profitability in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Opera Limited currently has an Earnings ESP of 0.00% and a Zacks Rank #1 (Strong-Buy). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:

Affirm AFRM currently has an Earnings ESP of +52.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM is set to report its fiscal third-quarter fiscal 2025 results on May 8. The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 8 cents per share. The consensus estimate indicates year-over-year growth of 81.40%.

StoneCo STNE currently has an Earnings ESP of +13.79% and a Zacks Rank #1.

STNE is scheduled to release its first-quarter 2025 results on May 08. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 29 cents per share, suggesting no change from the year-ago reported figure.

Baidu BIDU has an Earnings ESP of +8.67% and a Zacks Rank #2 at present.

BIDU is set to report its first-quarter 2025 results on May 21. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.96 per share. The consensus estimate indicates a year-over-year decline of 28.99%.

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This article originally published on Zacks Investment Research (zacks.com).

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