Technology

What to Expect From Twitter's Earnings Report

Twitter Inc. (NYSE: TWTR) is set to report its third-quarter earnings after the U.S. markets close on Monday. Thomson Reuters has consensus estimates of $0.01 in earnings per share and $351.35 million in revenue.

Looking ahead to the fourth quarter, the consensus estimates are $0.06 in earnings per share and revenue of $448.18 million.

Brand Keys ranked Twitter in the top 20 brand loyalty leaders. This list spanned 65 product categories and 721 brands. The list noted that out of the top 20 stocks, only one was not a tech company.

Citigroup initiated coverage of Twitter, with a Neutral rating and a $53, on October 21.

Sterne Agee analyst Arvind Bhatia noted in his report on Twitter that a strong third-quarter is expected due to its 30% positive move in the past three months, the premium valuation and its history of significantly exceeding expectations in each of the three quarters since its initial public offering.

Areas to focus on for this earnings report will be user growth, engagement, monetization and international. The initial tests in e-commerce likely will attract some attention, as well.

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Twitter has been testing the 50-day moving average, which now reads at $50.31, since mid-October. In July, the 50-day moving average acted as support. The 200-day moving average was initiated in late August and remained under the curve briefly, acting as support in mid-October. It currently reads at $46.30.

Shares of Twitter traded down almost 2% at $49.00 midday Monday. The stock has a consensus analyst price target of $54.82 and a 52-week range of $29.51 to $74.73. The market cap is $30 billion.

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