What to Expect When Twitter Reports Tuesday

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Twitter Inc. (NYSE: TWTR) is scheduled to release its first-quarter financial results before the markets open on Tuesday. The consensus estimates call for $0.15 in earnings per share (EPS) and $775.23 million in revenue. The same period of last year reportedly had $0.16 in EPS and $664.87 million in revenue.

The firm announced back in February that starting this quarter, in addition to sharing the growth in monetizable daily active users (mDAU) as it has since 2016, management is disclosing the absolute number of average mDAU (previously referred to as DAU), for both the U.S. and international markets. As mDAU will be the metric used to show the size of its audience and engagement going forward, the firm will discontinue disclosing monthly active users (MAU) after the first quarter.

In the fourth quarter, average mDAU totaled 126 million, compared to 115 million in the same period of the previous year and to 124 million in the previous quarter.

Twitter previously issued guidance indicating it expects to see total revenue in the range of $715 million to $775 million and GAAP operating income between $5 million and $35 million for the first quarter.

Overall Twitter has outperformed the broad markets, with its stock up about 20% year to date. The stock is actually up about 9% in the past 52 weeks.

A few analysts weighed in on Twitter ahead of the results:

  • SunTrust has a Hold rating with a $34 price target.
  • Wedbush has a Neutral rating and a $37 price target.
  • Guggenheim has a Buy rating with a $41 price target.
  • Cascend Securities has a Buy rating with a $45 target.
  • BTIG Research has a Buy rating with a $42 price target.
  • Robert Baird has a Neutral rating and a $33 price target.

Shares of Twitter were last seen trading at $34.20, in a 52-week range of $26.19 to $47.79. The consensus price target is $33.56.

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