Social-media heavyweight Twitter (NYSE: TWTR) has underperformed the broader markets for the reason that firm went public in November 2013. Twitter priced its IPO at $26 per share, and the inventory is presently buying and selling at $39.50, indicating whole returns of simply over 50%. On this interval, the S&P 500 has returned 161% to buyers.
Extra lately, Twitter has been concerned in a public spat with Elon Musk, the world’s richest man. Musk, additionally the founding father of Tesla, initially supposed to take Twitter private in a deal valued at $44 billion. However Musk backed out of the settlement as he believes the variety of spam accounts on the platform is far increased than beforehand anticipated.
Whereas the saga between Twitter and Musk will seemingly proceed to seize headlines within the second half of 2022, let’s see what buyers ought to count on from the previous’s upcoming quarterly outcomes.
When is Twitter’s earnings date?
Twitter is scheduled to report its earnings for Q2 of 2022 on Friday, July twenty second at 8:00 am Japanese Time.
How can I take heed to Twitter’s earnings name?
To take heed to the decision and entry the earnings transcript, in addition to the shareholder’s letter and the corporate’s monetary statements for the quarter, all that you must do is go to Twitter’s investor relations page.
What to anticipate from Twitter’s Q2 earnings?
Twitter is among the many hottest social media platforms on this planet. It’s utilized by the world’s most outstanding personalities — together with politicians, actors, and sports activities stars — to attach and interact with their viewers.
In early 2021, Twitter said its day by day energetic customers might enhance to 315 million by December 2023, indicating annual development charges of 20%. The fast growth of its person base and rising advert income would enable Twitter to extend gross sales to $7.5 billion in 2023, up from $3.7 billion in 2020.
Whereas Twitter’s gross sales have grown in the previous few years, it’s but to report constant GAAP income, which additionally embody non-recurring bills. In 2021, Twitter’s adjusted earnings per share (EPS) greater than doubled to $0.20 per share, valuing the inventory at a hefty trailing value to earnings a number of of just about 200x.
In Q2 of 2022, analysts count on Twitter gross sales to rise 23.4% year-over-year to $1.31 billion. Comparatively, adjusted earnings are forecast at $0.14 per share, in comparison with earnings of $0.20 per share within the year-ago interval.
In 2022, analysts count on gross sales to rise by 14.7% to $5.82 billion, whereas adjusted earnings would possibly enhance to $0.75 per share. So, the Twitter inventory is valued at 5.3x ahead gross sales and 53x ahead earnings, which is sort of steep. Nonetheless, within the final 5 years, its value to gross sales a number of was hovering round 8x and touched a excessive of 14x in April 2021.
Wall Road stays bullish on Twitter and expects shares to rise by virtually 15% within the subsequent 12 months, given consensus value goal estimates.
