Influencing Factors for SNAP INC. Earnings
Snap Inc will
report earnings at on Thursday, February 3, 2022, after the market closes.
Wall Street expects flat earnings compared to the year-ago quarter on
higher revenues when Snap Inc reports results for the quarter ended December
2021, on Thursday, February 3, 2022, after the market closes.
The consensus earnings estimate is for $0.10 per share on revenue of
$1.20 billion; but the Whisper number is lower at $0.09 per share.
Consensus estimates are for year-over-year earnings growth of 42.86%
with revenue increasing by 31.68%. The stock has drifted lower by 48.2% from
its open following the earnings release to be 50.4% below its 200 day moving
average of $61.36.
For the last reported quarter, it was expected that Snap would post
earnings of $0.06 per share when it actually produced earnings of $0.17,
delivering a surprise of +183.33%.
Over the last four quarters, the company has beaten consensus EPS
estimates four times.
Equities research analysts at Truist Financial issued their Q2 2022
earnings per share estimates for shares of Snap in a research note issued to
investors on Wednesday, January 26th. Truist Financial analyst Y. Squali
expects that the company will post earnings per share of ($0.05) for the
quarter. Truist Financial also issued estimates for Snap’s Q3 2022 earnings at
($0.02) EPS, Q4 2022 earnings at $0.04 EPS, FY2024 earnings at $1.10 EPS,
FY2025 earnings at $2.02 EPS and FY2026 earnings at $3.14 EPS.
Federal Reserve Action.....
Stocks are being
stung by the larger shift toward safe havens as markets prepare for the Federal
Reserve to start raising interest rates. Higher rates weigh particularly hard
on the valuations of growth stocks, and that’s adding to already existing
concerns about patent longevity, drug-pricing reform and tougher merger rules.
out changes a few quarters back giving users more control over how their
activity could be tracked by advertisers. Multiple social-media companies
called out the move as a headwind shortly after the rollout, and there is worry
about Snap’s ability to navigate the new terrain.
to be little evidence of progress on combating Apple’s privacy changes to the
identifier for advertisers, or IDFA, since Snap reported third-quarter results.
companies need to build or promote alternate measurement capabilities that will
allow advertisers to gauge the effectiveness of their ads, but Snap was
initially too reliant on an Apple measurement tool that is proving to be
difficulties brought on by Apple’s ad changes could impact Snap’s ability to
hit its multiyear revenue growth target of at least 50%.
Rise of TikTok.....
continued rise of TikTok is a concern. Both TikTok and Snap Inc compete for
more “experimental” ad budgets, and many agencies plan to “materially increase”
their spending on TikTok in the next few years. Additionally, TikTok’s growing
popularity ultimately could limit Snap’s user-growth opportunities.
Multimedia instant messaging app Snap Inc does not evoke enough
confidence to stay bullish on its stock, according to Wedbush analyst Ygal
Snap shares from Outperform to Neutral and reduced the price target from $56 to
revenue growth faces risk from a trio of factors, Arounian said in a note.....
- The social
media platform has made little progress against Identifiers for Advertisers, or
IDFA, since the company reported its third-quarter results, the analyst noted.
IDFA is a random device identifier assigned by Apple, Inc. (NASDAQ:AAPL) to a
- This has the
biggest near- and potentially mid-term impact on Snap's ability to get back to
50%-plus revenue growth, the analyst said.
- The company
is facing difficult comparisons against the stellar growth seen in fiscal years
2020 and 2021, Arounian noted.
- The analyst
also sees competitive factors increasing, particularly from TikTok. TikTok and
Snap Inc share very similar audiences, putting the latter's
engagement/time spent and ad dollars at risk, the analyst said. The Chinese app
is gaining traction with advertisers, which could put pressure on Snap's
therefore, is more cautious on a risk/reward basis, particularly in an
environment where high growth risk multiples are under duress.
Snap Inc had its price target
decreased by equities research analysts at MKM Partners from $70.00 to $42.00
in a research report issued to clients and investors on Friday.
Snap Inc had its price target
reduced by equities research analysts at Truist Financial from $75.00 to $65.00
in a research report issued to clients and investors on Wednesday.