Snap Q1 Earnings Preview: What To Expect

Snap Q1 Earnings Preview: What To Expect

Snap, Inc. (SNAP) is looking to continue its red-hot 2019 when the company reports first-quarter earnings. Here’s a look at what Wall Street is expecting from Snap after Tuesday's closing bell.

The Numbers

Analysts are expecting Snap to report a first-quarter EPS loss of 12 cents. Analysts are also calling for revenue of $306.48 million, up 32.9 percent from a year ago. Investors will also be watching user numbers closely. The consensus analyst estimate for daily active users is 187 million, up from 186 million in the fourth quarter.

A recent report by eMarketer suggests Snap may report its first-ever decline in U.S. monthly users this quarter. Snap disputes the methodology eMarketer used in its study.

“The report does not factor in key recent developments at Snap, such as our revamped Android app, or reference our statement in February that we do not anticipate a sequential decline in our daily active user total in Q1 2019,” a Snap spokesperson said, according to Barron’s.

Looking ahead to the second quarter, Wall Street analysts are expecting Snap to guide for EPS loss of 9 cents on $348 billion in revenue.

Analyst Take

Several analysts have weighed in on Snap ahead of its earnings report.

Nomura Instinet analyst Mark Kelley is expecting $301 million in revenue and 186 million DAUs, both below consensus expectations.

“We expect the company to focus on the Android redesign, which in our view is one of the most important issues the company faces, and we anticipate there will be plenty of commentary about the new features announced at the Snap Partner Summit such as Snap Games and Snap Audience Network,” Kelley wrote in a note. He said any commentary on the call about the long-term trajectory of Snap’s user growth will also be key for the stock.

Nomura Instinet has a Neutral rating and $9 price target for Snap.

Guggenheim analyst Michael Morris is more bullish on Snap’s quarter, estimating a $307 million in revenue and 188 million DAUs, both slightly above consensus expectations.

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