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Hannibal X 8 years, 2 months ago.
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What to expect from Twitter’s earnings report
Twitter plans to report earnings after the market closes Wednesday. Analysts are looking to the report and management’s comments for updates on user growth, efforts to pull in more logged-out users and clarity on rumored product changes so they can pull together an idea of where the platform is going.
Here’s what to expect:
Earnings: Analysts surveyed by FactSet expect adjusted earnings per share of 12 cents. The Estimize consensus, compiled from 250 crowdsourced estimates, is for adjusted earnings per share of 12 cents. At this time last year, Twitter beat analyst expectations with earnings per share of 12 cents.
Revenue: FactSet’s analyst survey expects Twitter to report revenue of $710 million. The Estimize consensus is for revenue of $709 million. Twitter beat expectations in the year-earlier period with revenue of $479.1 million.
Market reaction: Shares of Twitter TWTR, +5.70% have fallen 6% in the past three months, compared with the S&P 500’s decline of 11%. In the past month, shares of Twitter have dropped 27%, compared with the S&P 500’s drop of 4%.
On Tuesday, Twitter shares closed at all-time low for the third-straight session, and for the 14th time in the 26 sessions of 2016.
What to look for: There are still a lot of questions about Twitter, particularly around a recent report that the platform would change to an algorithmic timeline–which reorganizes tweets by what it thinks users want to see — rather than in chronological order.
Jack Dorsey, the company’s chief executive, responded with a “tweetstorm” saying the product changes weren’t immediate and that executives valued Twitter’s “real-time” aspect.
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