Twitter $TWTR is going to report fourth-quarter fiscal 2018 earnings results on Thursday before the opening bell. Twitter stock closed Tuesday at $34.37 and has grown up more than 19% in 2019, compared to the 9% rise of the S&P 500 index.
So far, Twitter can be called if not a market leader (that spot has been taken by $FB), but a good market challenger. The last couple of years, the business is going better for the company and Twitter now is moving in the right direction. Сonsidering this, investors are putting higher expectations on Twitter.
On Thursday, everybody is going to be concerned about the numbers, that will reveal just how much more potential for growth is still remain. One of the important questions, if Twitter can stay a competitive advertiser meanwhile Amazon $AMZN has entered the market? Also, will the company’s commentary surrounding strategy and execution serve as a catalyst to get investors excited about said guidance?
Wall Street expects in Q4 earnings report to see EPS of $0.25 on revenue of $869.5 million. For the full year, earnings are expected to boost 81.2% year over year to 80 cents per share, while full-year revenue of the $3 billion would rise 22.8% year over year.
During reporting Q3 Earnings, Twitter performed better-than-expected. The Wall Street Analysts was wondered by the company’s revenue and profit numbers. The secret could be that the company has started to implement CEO Jack Dorsey’s long-term business plan, though there’s still some concern about user engagement. The main focus of the plan would be kept on better user monetization, which is necessary for Twitter to support its share price.
Wall Street expects monthly active users (MAU) to reach 321 million, while daily active users (DAU) is projected at 160 million. These are important metrics for advertising prices, which appear to be the main sources of income. In last year’s Q4, the company reported MAU and DAUs of 330 million and 164 million, respectively. Twitter has recently purged a network of bots and other abusive accounts on its platform in an effort to reduce abuse. So far, we can say that Twitter is in a far better place than it was two years ago.