We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Earnings season is always an exciting time to be an investor. Investors get backstage access to companies’ financial results, giving them a more precise idea of how smooth (or rough) operations have been.
In addition, stocks generally move up during earnings season – undoubtedly a major positive. With earnings season shifting into full gear, we have a surplus of companies unveiling quarterly results daily.
One company slated to release quarterly results this week after the trading session on Thursday is Snap (SNAP - Free Report) . Snap’s flagship product, Snapchat, is a mobile camera application that helps people communicate through short videos and images called Snaps.
Snap is currently a Zacks Rank #4 (Sell) with an overall VGM Score of a D. In addition, the company resides in the Zacks Internet – Software Industry, which has a year-to-date return of -51%.
We can look at a few of the company’s metrics heading into the quarterly report to understand how business has been behind the curtains.
Share Performance & Valuation
Snap shares have been the victim of one of the deeper valuation slashes we’ve seen year-to-date, decreasing nearly 70% in value and extensively underperforming its Zacks Industry.
Image Source: Zacks Investment Research
However, over the last month, Snap shares have found much-needed new life, increasing nearly 15% in value and outperforming its Zacks Industry by a sizable margin.
Image Source: Zacks Investment Research
Snap has elevated valuation levels; the company’s forward price-to-sales ratio of 4.5X is well above its Zacks Industry average of 1.7X. In addition, Snap carries a Style Score of an F for Value.
Image Source: Zacks Investment Research
Quarterly Performance
Snap has undoubtedly impressed with its bottom-line results, with five triple-digit EPS beats over its last ten quarters. In addition, the company boasts a 27.3% Earnings ESP Score heading into the quarterly report.
Quarterly revenue has primarily been reported above expectations; over its last ten quarters, Snap has recorded eight top-line beats. The chart below illustrates the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Growth Estimates
For the quarter to be reported, analysts have significantly dialed back their earnings estimates, with all seven estimate revisions being negative.
Image Source: Zacks Investment Research
In addition, the -$0.01 Zacks Consensus Estimate reflects a 110% decrease in quarterly earnings from the year-ago quarter.
However, the top-line appears to be in exceptional shape – the $1.1 billion quarterly sales estimate represents a notable 16% uptick in quarterly revenue year-over-year.
Key Metrics
Investors should keep an eye out for a couple of crucial metrics, including average revenue per user and daily active users.
Currently, the Zacks Consensus Estimate for daily active users throughout the quarter resides at 341 million, a 3.6% uptick from its previous quarter and a 17% change year-over-year.
In addition, the Zacks Consensus Estimate for average revenue per user resides at $3.57, a solid 10.5% change from the previous quarter and a 23% year-over-year change.
Bottom Line
Snap shares have tumbled in the market year-to-date, undoubtedly a reflection of the harsh macroeconomic backdrop we’ve found ourselves in after coming out of a once-in-a-lifetime pandemic.
Furthermore, the company is a Zacks Rank #4 (Sell), has elevated valuation levels, and quarterly earnings are forecasted to decrease quite significantly.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Snap Q2 Preview: Can Shares Find Their Groove?
Earnings season is always an exciting time to be an investor. Investors get backstage access to companies’ financial results, giving them a more precise idea of how smooth (or rough) operations have been.
In addition, stocks generally move up during earnings season – undoubtedly a major positive. With earnings season shifting into full gear, we have a surplus of companies unveiling quarterly results daily.
One company slated to release quarterly results this week after the trading session on Thursday is Snap (SNAP - Free Report) . Snap’s flagship product, Snapchat, is a mobile camera application that helps people communicate through short videos and images called Snaps.
Snap is currently a Zacks Rank #4 (Sell) with an overall VGM Score of a D. In addition, the company resides in the Zacks Internet – Software Industry, which has a year-to-date return of -51%.
We can look at a few of the company’s metrics heading into the quarterly report to understand how business has been behind the curtains.
Share Performance & Valuation
Snap shares have been the victim of one of the deeper valuation slashes we’ve seen year-to-date, decreasing nearly 70% in value and extensively underperforming its Zacks Industry.
Image Source: Zacks Investment Research
However, over the last month, Snap shares have found much-needed new life, increasing nearly 15% in value and outperforming its Zacks Industry by a sizable margin.
Image Source: Zacks Investment Research
Snap has elevated valuation levels; the company’s forward price-to-sales ratio of 4.5X is well above its Zacks Industry average of 1.7X. In addition, Snap carries a Style Score of an F for Value.
Image Source: Zacks Investment Research
Quarterly Performance
Snap has undoubtedly impressed with its bottom-line results, with five triple-digit EPS beats over its last ten quarters. In addition, the company boasts a 27.3% Earnings ESP Score heading into the quarterly report.
Quarterly revenue has primarily been reported above expectations; over its last ten quarters, Snap has recorded eight top-line beats. The chart below illustrates the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Growth Estimates
For the quarter to be reported, analysts have significantly dialed back their earnings estimates, with all seven estimate revisions being negative.
Image Source: Zacks Investment Research
In addition, the -$0.01 Zacks Consensus Estimate reflects a 110% decrease in quarterly earnings from the year-ago quarter.
However, the top-line appears to be in exceptional shape – the $1.1 billion quarterly sales estimate represents a notable 16% uptick in quarterly revenue year-over-year.
Key Metrics
Investors should keep an eye out for a couple of crucial metrics, including average revenue per user and daily active users.
Currently, the Zacks Consensus Estimate for daily active users throughout the quarter resides at 341 million, a 3.6% uptick from its previous quarter and a 17% change year-over-year.
In addition, the Zacks Consensus Estimate for average revenue per user resides at $3.57, a solid 10.5% change from the previous quarter and a 23% year-over-year change.
Bottom Line
Snap shares have tumbled in the market year-to-date, undoubtedly a reflection of the harsh macroeconomic backdrop we’ve found ourselves in after coming out of a once-in-a-lifetime pandemic.
Furthermore, the company is a Zacks Rank #4 (Sell), has elevated valuation levels, and quarterly earnings are forecasted to decrease quite significantly.