Investing

Earnings Previews: American Express, Snap, Twitter, Verizon

Analysts like, but do not love, the stock. Of 25 brokerages covering the firm, 12 have a Hold rating and another 12 have a Buy or Strong Buy rating. At a recent share price of around $147.80, the implied gain based on a median price target of $168.00 is about 13.7%. At the high price target of $210.00, the upside potential rises to 42%.

Second-quarter revenue is forecast to rise sequentially by about 6.9% to $12.54 billion. That is a jump of about 22.4% year over year. Adjusted EPS are pegged at $2.41, down 11.7% sequentially and by 13.9% year over year. For the full 2022 fiscal year, analysts are looking for EPS of $9.77, down 2.5%, on revenue of $50.61 billion, up 19.4%.

The stock trades at 15.1 times expected 2022 EPS, 13.2 times estimated 2023 earnings of $11.20 and 12.3 times estimated 2024 earnings of $12.05 per share. The stock’s 52-week range is $134.12 to $199.55, and American Express pays an annual dividend of $2.08 (yield of 1.46%). Total shareholder return for the past 12 months was negative 8.2%.

Snap

On Monday, Snap Inc. (NYSE: SNAP) introduced a web version of its mobile app that will be available only to users of its (paid) Snapchat+ subscribers. Snap launched the paid app ($3.99 a month) in late June in an effort to offset lower advertising revenue. The company had to try something because its stock has dropped by 76% over the past 12 months and by 83% since its 52-week high in late September. The company reports quarterly results after U.S. markets close on Thursday.


There are a total of 41 brokerages covering Snap stock. Analysts are solidly bullish, with 31 having a Buy or Strong Buy rating and nine rating the shares at Hold. At a share price of around $14.20, the upside potential based on a median price target of $23.00 is 62%. At the high price target of $65.00, the upside potential is 357.7%.

Second-quarter revenue is forecast at $1.14 billion, up 6.8% sequentially and 16.1% higher year over year. Analysts are looking for an adjusted loss per share of $0.03, a penny lower sequentially and down from EPS of $0.10 in the year-ago quarter. For the full 2022 fiscal year, consensus estimates call for EPS of $0.20, down 59.5%, on sales of $4.99 billion, up 21.3%.

Snap stock trades at 69.8 times expected 2022 EPS, 25.4 times estimated 2023 earnings of $0.56 and 15.7 times estimated 2024 earnings of $0.90 per share. The stock’s 52-week range is $11.88 to $83.34. Snap does not pay a dividend, and total shareholder return for the past year was negative 76.3%.

Twitter

In early April, Tesla CEO Elon Musk announced a $44 billion offer to take Twitter Inc. (NYSE: TWTR) private. Since the company’s board accepted the offer ($54.20 per share) on April 25, Twitter’s share price has fallen by nearly 24%. Musk has withdrawn his offer, Twitter has filed a lawsuit and a Delaware judge set aside five days in October to hear the case. The outcome of the dispute may have a bigger impact on Twitter’s share price than anything else the company does to boost its fortunes in the battle against TikTok. Twitter reports quarterly results early Friday.

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