Yahoo Finance Snap (SNAP) Q2 Earnings: What To Expect
Social network Snapchat (NYSE: SNAP) will be reporting results tomorrow afternoon. Here's what to look for.
Snap beat analysts' revenue expectations by 6.6% last quarter, reporting revenues of $1.19 billion, up 20.9% year on year. It was an impressive quarter for the company, with strong sales guidance for the next quarter and solid growth in its users. It reported 422 million daily active users, up 10.2% year on year.
Is Snap a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Snap's revenue to grow 17.1% year on year to $1.25 billion, a reversal from the 3.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snap has missed Wall Street's revenue estimates five times over the last two years.
Looking at Snap's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Pinterest delivered year-on-year revenue growth of 20.6%, meeting analysts' expectations, and Netflix reported revenues up 16.8%, in line with consensus estimates. Netflix traded down 1.5% following the results.
Read our full analysis of Pinterest's results here and Netflix's results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Snap is down 21.8% during the same time and is heading into earnings with an average analyst price target of $15.4 (compared to the current share price of $12.71).
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