TWTR Earnings Forecast
All eyes will be on TWTR stock after today’s close. Wall Street analysts are on average expecting the social media company to post $607.84 million in sales during the quarter. This would show a 15.58% decrease from the Q415 revenue of $720 million and an increase of 39.41% from the same period in Q115. EPS in Q116 are expected to come in at $0.10, a growth rate of 42.86% from $0.07 per share a year earlier. Meanwhile, EarningsWhisper.com reports a whisper number of $0.14 per share.
As a quick reminder, Twitter, Inc. (TWTR) reported Q415 EPS of $0.16, $0.04 better than the Street’s consensus estimate. Revenue increased 50.29% yoy to $720 million versus the $709.94 million consensus. Q415 monthly active users (MAUs), the metric that matters the most to Wall Street, came in at 305 million from 307 million in the previous quarter.
“Twitter certainly captures a huge audience today in the U.S., if everything is included – including its external advertising traffic – as all together 222m people in the US are exposed to Twitter in a given month”, Dr. Hannu Verkasalo, CEO of Verto Analytics said in a research note. “Their active daily user base is also impressive, at 94m users – and while not on the same level with Facebook or Google, it is a lot. The smartphone audience – which is key for any social or messaging platform today – is just shy off 110m monthly users. What is worrisome is that most of Twitter’s engagement still comes from PC users (on average 2.0 hours per user per month) vs. mobile platforms. They need to drive mobile engagement to be able to leverage the growth fully in mobile advertising in the future”.
Many analysts expect Twitter’s Q116 user numbers to grow slightly to 307 million users. If the company manages to improve both its monthly active users and bottom line, we might see a trend reversal in TWTR stock, which unfortunately for longs continues to trade below its IPO price of $26 with a year-to-date negative net result of 26.24 percent.
So far this morning, TWTR is indicated +0.9% at $17.09 and now stands more than 75% lower from its all time highs set in early-January 2014. The $11.87 billion market San Francisco, Calif.-based company, currently down 66.37% year-over-year, compared with a 1.28% loss in the S&P 500, has a median Street price target of $19.00 with a high target of $39.00.
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