Social network Snapchat (NYSE: SNAP) will be announcing earnings results this Tuesday after market hours. Here’s what investors should know.
Snap beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $1.36 billion, up 14.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and solid growth in its users. It reported 460 million daily active users, up 9% 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 9.1% year on year to $1.35 billion, slowing from the 15.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at Snap’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 77.7%, beating analysts’ expectations by 17.2%, and Meta reported revenues up 21.6%, topping estimates by 6%. Reddit traded up 16.9% following the results while Meta was also up 11.2%.
Read our full analysis of Reddit’s results here and Meta’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 1.8% during the same time and is heading into earnings with an average analyst price target of $9.88 (compared to the current share price of $9.02).
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