Twitter beats analyst estimates
Twitter (TWTR) released its 3Q15 earnings on Tuesday, October 27, 2015. The social media company reported adjusted EPS (earnings per share) of $0.10 on revenue of $569 million. The year-over-year (or YoY) growth in revenue was 58% compared to 60% revenue growth in 2Q15.
Twitter beat analysts’ estimates for both EPS and revenue. The consensus analyst estimate was adjusted EPS of $0.05 on revenue of $559 million. Based on the company’s 3Q15 performance, Twitter’s projected revenue guidance is $695–$710 million for the fourth quarter of 2015. Analysts’ consensus estimate for 4Q15 is $740 million.
Twitter’s growth rates
As you can see in the above graph, Twitter saw YoY revenue growth rates of 97%, 74%, and 60% for 4Q14, 1Q15, and 2Q15, respectively. Although these growth rates are impressive in absolute terms, they have declined over the last few quarters. Like Twitter, LinkedIn (LNKD) also lowered its guidance for the rest of 2015. LNKD stock fell 20% after the release of its 2Q15 earnings.
Alibaba (BABA), a leading Chinese (FXI) Internet giant, also released its earnings on Tuesday, October 27. Analysts are expecting robust results from Facebook (FB), which is scheduled to release its 3Q15 earnings on November 4.