What to Watch in Snap's Q3 Report

Snap Inc. (NYSE: SNAP) is scheduled to release its third-quarter financial results after the markets close on Tuesday. The consensus estimates call for a net loss of $0.05 per share and $434.79 million in revenue. The same period of last year reportedly had a net loss of $0.12 per share and $297.69 million in revenue.

The company previously issued third-quarter guidance calling for revenues in the range of $410 million to $435 million and an adjusted EBITDA loss between $85 million and $60 million.

During the second quarter, daily active users increased to 203 million from 190 million in the previous quarter and 188 million in the second quarter last year.

At the same time, average revenue per user increased by 21% to $1.91, compared to $1.40 in the same period last year.

Overall Snap has outperformed the broad markets, with its stock up about 165% year to date. In the past 52 weeks, the stock was up closer to 114%.

A few other analysts weighed in on Snap ahead of the report:

  • Credit Suisse has an Outperform rating and a $21 price target.
  • Stifel’s Buy rating comes with a $19 price target.
  • Morgan Stanley’s Equal Weight rating comes with a $17 target.
  • Merrill Lynch has a Buy rating with an $18 target price.
  • Rosenblatt has a Buy rating with a $21 target price.
  • Moffett Nathanson has a Neutral rating with a $14 target.

Shares of Snap traded down 2% to $14.29 on Tuesday, in a 52-week range of $4.82 to $18.36. The consensus price target is $17.64.