Social network Snapchat (NYSE: SNAP) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Snap beat analysts’ revenue expectations last quarter, reporting revenues of $1.60 billion, up 18.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Snap a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Snap’s revenue to grow 14.9% year on year, improving from the 9.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Snap rarely misses Wall Street’s revenue estimates.
Looking at Snap’s peers in the social networking segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 2%, and Reddit reported revenues up 53%, topping estimates by 2%. Meta traded down 7% following the results while Reddit was also down 28.4%.
Read our full analysis of Meta’s results here and Reddit’s results here.
There has been positive sentiment among investors in the social networking segment, with share prices up 4.7% on average over the last month. Snap is down 2.7% during the same time and is heading into earnings with an average analyst price target of $7.44 (compared to the current share price of $5.46).
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