What to Expect When Snap Reports After the Close
Snap is set to report its first-quarter financial results after the markets close on Tuesday. Analysts anticipate another net loss.
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Snap Inc. (NYSE: SNAP | SNAP Price Prediction) is set to report its first-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for a net loss of $0.07 per share and $431.43 million in revenue. The same period from last year had a net loss of $0.10 per share and $320.43 million in revenue.
The company’s previously issued guidance for the first quarter called for revenues in the range of $450 million to $470 million and an adjusted EBITDA loss between $90 million and $70 million. However, these numbers may be subject to change as a result of the coronavirus outbreak.
During the fourth quarter, daily active users increased to 218 million compared to 187 million.
At the same time, average revenue per user increased by 23% to $2.58, compared to the fourth quarter from last year.
Excluding Tuesday’s move, Snap stock had underperformed the S&P 500 and Dow Jones industrial average with a retreat of about 21% year to date. In the past 52 weeks, the share price is actually up 11%.
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Here’s what analysts had to say ahead of the report:
- Deutsche Bank has a Buy rating and a $16 price target.
- Stifel has a Buy rating with a $15 target price.
- Merrill Lynch’s Buy rating comes with a $15 price target.
- Wells Fargo rates it as Buy with a $14 target price.
- Credit Suisse has an Outperform rating and a $20 target.
- MKM Partners has a Buy rating with a $17 price target.
Snap stock traded down about 1% on Tuesday, at $12.82 in a 52-week range of $7.89 to $19.75. The consensus price target is $16.15.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
