Twitter Inc. is expected to release its earnings report later today. Here is the earnings preview
For a very long time now, earnings season for Twitter Inc. has proved to be dreadful. The company is missing analysts’ expectations in every other quarter. It was believed that the company has posted poor results in nine consecutive quarters which raised concerns among the investors and shareholders regarding its leadership management and strategy to do business. The former CEO, Dick Costolo, stepped back from his position because of the same reason. Now the pressure lies on Jack Dorsey who is expected to bring Twitter back to its normal ways.
There is no doubt in the fact that the company has seen major changes since July when it posted its last quarterly earnings. The social media network named Jack Dorsey at its full-time permanent new CEO. It also nominated as a new executive chairman to improve the decision making of the company. And launched a game changing product called as Moments. Twitter made some fundamental changes in its platform and interface as well where the company also rolled out unlimited direct messages option. Its major announcement in recent times was to shed almost 8 percent of its work force throughout the world.
The social media giant is expected to post its earnings later today. Analysts at FactSet have surveyed regarding how the company’s result will pose off in this quarter. According to Market Watch, the company is expected to adjust the earnings per share (EPS) of 5 cents. This is improved if compared to the same quarter last year where the company only managed to post adjusted earnings per share of 1 cent.
Analysts at FactSet have predicted that Twitter will easily post sales of $560 million in this quarter which is almost doubled than the sales of the same quarter last year. The company reported $361.3 million in sales at that time only.
However, Twitter stocks are not showing any improvement lately. It is estimated that they have significantly declined by a massive 17 percent in the last three months. The main reason of as to why the stocks fall down was the announcement of a permanent CEO. Ever since then, the stocks have trended upwards. In fact, social media website’s shares have managed to increase by 14 percent.
It is estimated that the company will have a better quarter finally after so long this year.
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