Snap's Q4 Earnings Preview: Growth Bets and Analyst Expectations
Social media giant Snap (NYSE: SNAP) releases its fourth-quarter results after the market close on Thursday. Analysts have high expectations following the company's strong performance in Q3, where it surpassed revenue estimates by 1.1% and recorded a 15.5% year-over-year increase.
Revenue and Earnings Estimates:
For the fourth quarter, analysts anticipate a 13.7% year-over-year revenue growth to $1.55 billion, a significant improvement from the 4.7% growth in the same quarter last year. Adjusted earnings per share are forecast at $0.14.
Analysts' Consensus:
Over the past 30 days, analysts covering Snap have largely reaffirmed their estimates, indicating their belief in the company's growth trajectory leading up to earnings. However, Snap has missed Wall Street's revenue projections four times in the past two years, indicating potential risks.
Peer Comparisons:
Peers in the consumer internet sector, such as Meta and Coursera, have already reported mixed Q4 results. Meta beat revenue expectations by 2.9% with a 20.6% year-over-year growth, while Coursera surpassed estimates by 1.6% but reported only a 6.1% revenue increase.
Market Outlook:
Investors in the consumer internet segment have been relatively cautious heading into earnings season, with share prices remaining flat over the past month. Snap has underperformed the sector, with a 12.6% decline during the same period. Despite this, analysts have an average price target of $13.14 for Snap's shares, significantly higher than the current price of $10.99.