What to Look For When Twitter Reports Thursday Morning
Twitter is scheduled to release its third-quarter financial results before the markets open on Thursday.
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Twitter Inc. (NYSE: TWTR) is scheduled to release its third-quarter financial results before the markets open on Thursday. The consensus estimates call for $0.20 in earnings per share (EPS) and $873.91 million in revenue. The same period of last year reportedly had $0.21 in EPS and $758.11 million in revenue.
The company previously issued guidance for the third quarter. Twitter expected to see total revenue in the range of $815 million to $875 million, with operating income between $45 million and $80 million.
In the second quarter, revenue increased 20% year over year, or 20% on a constant currency basis. International revenue totaled $386 million, an increase of 12%, or 16% on a constant currency basis.
Advertising revenue totaled $727 million, an increase of 21% year over year, or 23% on a constant currency basis. Total ad engagements increased 20% year over year, and cost per engagement was approximately flat in this time as well.
Excluding Wednesday’s move, Twitter had outperformed the broad markets, with its stock up about 35% year to date. The stock performed more or less the same in the past 52 weeks.
A few analysts weighed in on Twitter ahead of the results:
- BMO has a Market Perform rating with a $45 price target.
- Wedbush has a Neutral rating and a $42 price target.
- MKM Partners has a Neutral rating with a $44 price target.
- Morgan Stanley rates it as Equal Weight with a $34 target.
- Pivotal Research has a Buy rating with a $47 price target.
- Citigroup’s Hold rating comes with a $45 target price.
- Cascend Securities has a Buy rating and a $55 price target.
Shares of Twitter traded down over 1.5% at $38.19 on Wednesday, in a 52-week range of $26.26 to $45.86. The consensus price target is $42.07.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
