What to Look For When Twitter Reports Thursday Morning

By Chris Lange Updated Jan 30, 2:12PM EST · Published Oct 23, 1:30PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

What to Look For When Twitter Reports Thursday Morning — © Thinkstock

Twitter Inc. (NYSE: TWTR) is scheduled to release its third-quarter financial results before the markets open on Thursday. The consensus estimates call for $0.20 in earnings per share (EPS) and $873.91 million in revenue. The same period of last year reportedly had $0.21 in EPS and $758.11 million in revenue.

The company previously issued guidance for the third quarter. Twitter expected to see total revenue in the range of $815 million to $875 million, with operating income between $45 million and $80 million.

In the second quarter, revenue increased 20% year over year, or 20% on a constant currency basis. International revenue totaled $386 million, an increase of 12%, or 16% on a constant currency basis.

Advertising revenue totaled $727 million, an increase of 21% year over year, or 23% on a constant currency basis. Total ad engagements increased 20% year over year, and cost per engagement was approximately flat in this time as well.

Excluding Wednesday’s move, Twitter had outperformed the broad markets, with its stock up about 35% year to date. The stock performed more or less the same in the past 52 weeks.

[nativounit]

A few analysts weighed in on Twitter ahead of the results:

BMO has a Market Perform rating with a $45 price target.
Wedbush has a Neutral rating and a $42 price target.
MKM Partners has a Neutral rating with a $44 price target.
Morgan Stanley rates it as Equal Weight with a $34 target.
Pivotal Research has a Buy rating with a $47 price target.
Citigroup’s Hold rating comes with a $45 target price.
Cascend Securities has a Buy rating and a $55 price target.

Shares of Twitter traded down over 1.5% at $38.19 on Wednesday, in a 52-week range of $26.26 to $45.86. The consensus price target is $42.07.

[recirclink id=587143]
[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.