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For second-quarter 2024, Snap expects total revenues between $1.225 billion and $1.255 billion. Adjusted EBITDA is expected between $15 million and $45 million.
The Zacks Consensus Estimate for revenues is currently pegged at $1.25 billion, indicating a 17.35% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 2 cents per share in the past 30 days.
Snap’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 93.57%.
Let’s see how things have shaped up for the upcoming announcement.
Snap has been benefiting from a spike in the usage of Snapchat. The growing adoption of Snapchat among the Gen Z (13-24 years) population is expected to have driven Daily Active Users (DAUs), thus expanding the company’s advertiser base.
For the to-be-reported quarter, the company expects DAUs to be 431 million. In the first quarter, Snapchat’s subscriber growth, reflected by DAUs, increased 10.2% year over year to 422 million. Snap added 39 million DAUs on a year-over-year basis.
Our model estimate for second-quarter global DAUs is currently pegged at 431 million, indicating growth of 8.4% from the year-ago quarter’s level. The model estimate for DAUs in North America, Europe and ROW is currently pegged at 102 million, 100 million and 229 million, respectively.
The Snapchat+ subscription service reached more than nine million paying subscribers in the first quarter. Features like Creator Collab Campaigns and Snap Promote are expected to have aided subscriber growth in the to-be-reported quarter.
The company has made considerable progress in diversifying revenues with Snapchat+, ARES and sponsored AR advertising.
The introduction of My AI, a ChatGPT-powered chatbot, directly integrated into Snapchat, demonstrates its commitment to incorporating cutting-edge AI technology into its core product. This move, coupled with its efforts to enhance AR features and content creation tools using AI, indicates Snap's recognition of AI's potential to drive user engagement and retention.
Our model estimate for Snap’s second-quarter ARPU is pegged at $2.88, suggesting a decrease of 7% from the year-ago quarter’s reported figure.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Snapchat has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Image: Bigstock
SNAP Gears Up to Report Q2 Earnings: What's in the Cards?
Snap (SNAP - Free Report) is set to report second-quarter 2024 results on Aug 1.
For second-quarter 2024, Snap expects total revenues between $1.225 billion and $1.255 billion. Adjusted EBITDA is expected between $15 million and $45 million.
The Zacks Consensus Estimate for revenues is currently pegged at $1.25 billion, indicating a 17.35% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 2 cents per share in the past 30 days.
Snap’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 93.57%.
Let’s see how things have shaped up for the upcoming announcement.
Snap Inc. Price and EPS Surprise
Snap Inc. price-eps-surprise | Snap Inc. Quote
Factors to Note
Snap has been benefiting from a spike in the usage of Snapchat. The growing adoption of Snapchat among the Gen Z (13-24 years) population is expected to have driven Daily Active Users (DAUs), thus expanding the company’s advertiser base.
For the to-be-reported quarter, the company expects DAUs to be 431 million. In the first quarter, Snapchat’s subscriber growth, reflected by DAUs, increased 10.2% year over year to 422 million. Snap added 39 million DAUs on a year-over-year basis.
Our model estimate for second-quarter global DAUs is currently pegged at 431 million, indicating growth of 8.4% from the year-ago quarter’s level. The model estimate for DAUs in North America, Europe and ROW is currently pegged at 102 million, 100 million and 229 million, respectively.
The Snapchat+ subscription service reached more than nine million paying subscribers in the first quarter. Features like Creator Collab Campaigns and Snap Promote are expected to have aided subscriber growth in the to-be-reported quarter.
The company has made considerable progress in diversifying revenues with Snapchat+, ARES and sponsored AR advertising.
The introduction of My AI, a ChatGPT-powered chatbot, directly integrated into Snapchat, demonstrates its commitment to incorporating cutting-edge AI technology into its core product. This move, coupled with its efforts to enhance AR features and content creation tools using AI, indicates Snap's recognition of AI's potential to drive user engagement and retention.
Our model estimate for Snap’s second-quarter ARPU is pegged at $2.88, suggesting a decrease of 7% from the year-ago quarter’s reported figure.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Snapchat has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Arista Networks (ANET - Free Report) has an Earnings ESP of +1.72% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have jumped 33.4% year to date. ANET is set to report second-quarter 2024 results on Jul 30.
Apple (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank #2 at present.
Shares of Apple have gained 13% year to date. AAPL is set to report third-quarter fiscal 2024 results on Aug 1.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2 at present.
Shares of Cognizant Technology have lost 3.1% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.