Social network Snapchat (NYSE: SNAP) will be reporting results tomorrow after the bell. Here's what to expect.
Last quarter Snap reported revenues of $1.06 billion, up 38% year on year, missing analyst expectations by 0.57%. It was a mixed quarter for the company, with a strong revenue growth but a miss of the top line analyst estimates. The company reported 332 million daily active users, up 18.5% 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 15.6% year on year to $1.13 billion, slowing down from the 116% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice 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 there has been positive sentiment among investors in the segment, with the stocks up on average 5.97% over the last month. Snap is up 13.8% during the same time, and is heading into the earnings with analyst price target of $26.0, compared to share price of $14.48.
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The author has no position in any of the stocks mentioned.