Social network Snapchat (NYSE: SNAP) will be announcing earnings results tomorrow after market hours. Here's what to look for.
Last quarter Snap reported revenues of $1.36 billion, up 4.7% year on year, missing analyst expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and underwhelming revenue guidance for the next quarter. The company reported 414 million daily active users, up 10.4% 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 13.3% year on year to $1.12 billion, improving on the 7% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates six times over the last two years.
Looking at Snap's peers in the consumer internet segment, only Netflix has so far reported results, delivering top-line growth of 14.8% year on year, and beating analyst estimates by 1%. The stock was down 9.1% on the results.
Read our full analysis of Netflix's earnings results here.The fears around raising interest rates have been putting pressure on tech stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4% over the last month. Snap is up 1.9% during the same time, and is heading into the earnings with analyst price target of $13.6, compared to share price of $11.5.
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