Wall Street analysts expect Snap (SNAP) to post quarterly earnings of $0.06 per share in its upcoming report, which indicates a year-over-year decline of 25%. Revenues are expected to be $1.49 billion, up 8.7% from the year-ago quarter.
The current level reflects a downward revision of 3.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Snap metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Geographic Revenue- Europe' should come in at $284.20 million. The estimate suggests a change of +14.2% year over year.
The consensus among analysts is that 'Geographic Revenue- Rest of World' will reach $309.73 million. The estimate points to a change of +16.4% from the year-ago quarter.
Analysts' assessment points toward 'Geographic Revenue- North America' reaching $900.18 million. The estimate points to a change of +5% from the year-ago quarter.
The consensus estimate for 'Daily Active Users (DAU) - Total Global' stands at 476.46 million. Compared to the current estimate, the company reported 443.00 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Average revenue per user (ARPU) - Total Global' should arrive at $3.14 . Compared to the current estimate, the company reported $3.10 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Daily Active Users (DAU) - North America' of 98.00 million. Compared to the present estimate, the company reported 100.00 million in the same quarter last year.
It is projected by analysts that the 'Daily Active Users (DAU) - Europe' will reach 101.19 million. The estimate compares to the year-ago value of 99.00 million.
Analysts predict that the 'Daily Active Users (DAU) - Rest of World' will reach 277.31 million. The estimate compares to the year-ago value of 244.00 million.
The combined assessment of analysts suggests that 'Average revenue per user (ARPU) - North America' will likely reach $9.20 . The estimate compares to the year-ago value of $8.54 .
Analysts expect 'Employees (full-time; excludes part-time, contractors, and temporary personnel)' to come in at 5.26 billion. The estimate compares to the year-ago value of 4.80 billion.
View all Key Company Metrics for Snap here>>>
Shares of Snap have demonstrated returns of -8.2% over the past month compared to the Zacks S&P 500 composite's +2.1% change. With a Zacks Rank #4 (Sell), SNAP is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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