Social network Snapchat (NYSE: SNAP) will be announcing earnings results tomorrow after the bell. Here's what to expect.
Last quarter Snap reported revenues of $1.11 billion, up 13.1% year on year, missing analyst expectations by 2.07%. It was a weak quarter for the company, with a miss of the top line analyst estimates and slow revenue growth. The company reported 347 million daily active users, up 18.4% year on year.
Is Snap buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Snap's revenue to grow 5.93% year on year to $1.13 billion, slowing down from the 57.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing eleven upwards revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.
With Snap being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but the whole sector have been hit hard on fears of higher interest rates, with stocks down on average 8.66% over the last month. Snap is down 1.16% during the same time, and is heading into the earnings with analyst price target of $14.89, compared to share price of $11.01.
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The author has no position in any of the stocks mentioned.