What To Expect From Snap’s (SNAP) Q1 Earnings

Social network Snapchat (NYSE: SNAP) will be reporting earnings tomorrow after the bell. Here’s what to look for.

Snap beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.56 billion, up 14.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 453 million daily active users, up 9.4% year on year.

Is Snap a buy or sell going into earnings? Read our full analysis here, it’s free .

This quarter, analysts are expecting Snap’s revenue to grow 12.6% year on year to $1.35 billion, slowing from the 20.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snap has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Snap’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 1.2%, and Coursera reported revenues up 6.1%, topping estimates by 2.3%. Alphabet traded up 1.8% following the results while Coursera was also up 14.1%.

Read our full analysis of Alphabet’s results here and Coursera’s results here .

There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Snap is down 1.7% during the same time and is heading into earnings with an average analyst price target of $11.40 (compared to the current share price of $8.56).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link .