Analysts on Wall Street project that Reddit Inc. (RDDT) will announce quarterly earnings of $0.96 per share in its forthcoming report, representing an increase of 166.7% year over year. Revenues are projected to reach $667.58 million, increasing 56.1% from the same quarter last year.
The current level reflects a downward revision of 1.2% 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 release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Reddit Inc. metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Revenue- Other revenue' will reach $35.95 million. The estimate indicates a change of +8.4% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenue- Advertising revenue' should arrive at $632.43 million. The estimate suggests a change of +60.3% year over year.
It is projected by analysts that the 'Revenue- United States' will reach $534.46 million. The estimate points to a change of +53.7% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenue- International' will likely reach $135.35 million. The estimate indicates a change of +69.2% from the prior-year quarter.
Analysts predict that the 'DAUq (Daily Active Uniques) - Global' will reach 119.63 million. Compared to the current estimate, the company reported 101.70 million in the same quarter of the previous year.
According to the collective judgment of analysts, 'ARPU - Global' should come in at $5.61 . Compared to the present estimate, the company reported $4.21 in the same quarter last year.
The consensus estimate for 'DAUq (Daily Active Uniques) - U.S.' stands at 52.12 million. The estimate is in contrast to the year-ago figure of 53.70 million.
Analysts expect 'DAUq (Daily Active Uniques) - International' to come in at 67.45 million. Compared to the current estimate, the company reported 48.00 million in the same quarter of the previous year.
Analysts' assessment points toward 'ARPU - U.S.' reaching $10.12 . Compared to the present estimate, the company reported $7.04 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Logged-in DAUq - International' of 27.87 million. Compared to the current estimate, the company reported 24.20 million in the same quarter of the previous year.
Analysts forecast 'Logged-in DAUq - Global' to reach 51.38 million. The estimate compares to the year-ago value of 46.10 million.
The average prediction of analysts places 'Logged-in DAUq - U.S.' at 23.51 million. The estimate is in contrast to the year-ago figure of 21.90 million.
View all Key Company Metrics for Reddit Inc. here>>>
Shares of Reddit Inc. have experienced a change of -25.5% in the past month compared to the +0.7% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), RDDT is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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