Are Q4 Earnings Twitter's Time to Shine?

Twitter Inc. (NYSE: TWTR) is scheduled to release its fourth-quarter financial results before the markets open on Thursday. The consensus estimates are $0.29 in earnings per share (EPS) and $996.74 million in revenue. In the same period of last year, the social media giant said it had $0.31 in EPS and $908.84 million in revenue.

During the fourth quarter, Citigroup lowered its target price by 20%, down to $36 from $45. While that is still above the current share price, Citigroup’s rating is just Neutral. Hao Yan, the analyst covering Twitter, also lowered the company’s earnings target to $0.24 from $0.27 per share.

One of the revenue concerns arises from the impact of mobile application promotion. Yan also expects Twitter to issue more clarity regarding that mobile application promotion, as well as 2020 guidance, with its fourth-quarter earnings.

Citi is not alone in its concerns. Other analysts have backed off of Twitter in recent months, and many are still on the sideline about where this social media platform could go from here.

Excluding Wednesday’s move, Twitter stock had underperformed the broad markets, with the share price about where it was 52 weeks ago. However, in the past quarter, the stock was up closer to 15%.

Here’s what analysts had to say ahead of the report:

  • Stifel has a Hold rating with a $33 price target.
  • SunTrust Banks rates it as Hold with a $36 price target.
  • Deutsche Bank has a Hold rating with a $35 price target.
  • RBC has a Neutral rating and a $40 price target.

Shares of Twitter traded down 1% at 33.49 on Wednesday, in a 52-week range of $28.63 to $45.86. The consensus price target is $34.20.