Social network Twitter (NYSE: TWTR) will be reporting results tomorrow before market hours. Here's what you need to know.
Last quarter Twitter reported revenues of $1.2 billion, up 15.9% year on year, missing analyst expectations by 2.04%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a slow revenue growth. The company reported 229 million daily active users, up 15% year on year.
Is Twitter buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Twitter's revenue to grow 12.2% year on year to $1.33 billion, slowing down from the 74.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing eight downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.
With Twitter 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 8.75% over the last month. Twitter is up 2.68% during the same time, and is heading into the earnings with analyst price target of $44.89, compared to share price of $39.29.
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The author has no position in any of the stocks mentioned.