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Snap (SNAP) Q3 Earnings Report Preview: What To Look For

Social network Snapchat (NYSE: SNAP)
will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

Last quarter Snap reported revenues of $1.07 billion, down 3.89% year on year, in line with analyst expectations. It was a mixed quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. On the other hand, it was good to see Snap’s solid user growth, which was one of the few bright spots. The company reported 397 million daily active users, up 14.4% year on year.

Is Snap buy or sell heading into the earnings? Find out by reading the original article on StockStory.

This quarter analysts are expecting Snap’s revenue to decline 1.69% year on year to $1.11 billion, a further deceleration on the 5.71% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates six times over the last two years.

Looking at Snap’s peers in the consumer internet segment, only Netflix (NASDAQ:) has so far reported results, delivering top-line growth of 7.77% year on year, and beating analyst estimates by 0.02%. The stock traded up 16% on the results.

Read the full analysis of Netflix’s results on StockStory.
Triggered by the Federal Reserve’s hawkish stance on interest rates, shares of technology companies have been facing sell-off since 2022 and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 5.24% over the last month. Snap is up 10.3% during the same time and is heading into the earnings with analysts’ price target of $9.9, compared to share price of $9.5.

The author has no position in any of the stocks mentioned.

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