Social network Snapchat (NYSE: SNAP) will be reporting results tomorrow after market close. Here’s what to expect.
Snap beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.37 billion, up 15.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and solid growth in its users. It reported 443 million daily active users, up 9.1% year on year.
Is Snap a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Snap’s revenue to grow 13.7% year on year to $1.55 billion, improving from the 4.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snap has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Snap’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 20.6%, beating analysts’ expectations by 2.9%, and Coursera reported revenues up 6.1%, topping estimates by 1.6%. Meta traded up 1.5% following the results while Coursera was down 19.5%.
Read our full analysis of Meta’s results here and Coursera’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices flat over the last month. Snap is down 12.6% during the same time and is heading into earnings with an average analyst price target of $13.14 (compared to the current share price of $10.99).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.