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What to Watch for in SNAP’s Q3 Earnings

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Snap is set to release its third-quarter 2020 earnings report on Tuesday, Oct. 20, after the market closes. What do Wall Street analysts expect from the social media company in the third quarter?

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When Does Snap Report Earnings
Source: Pixabay

When is Snap’s earnings date?

Snap is set to post its third-quarter 2020 financial results on Tuesday, Oct. 20, after the market closes. The social media company has scheduled an earnings conference call with investors and financial analysts on the same day at 5:00 p.m. ET.

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In the third quarter, Wall Street analysts expect Snap to post sales of $550 million, which would be 23.3 percent higher than its $446.2 million in sales in the third quarter of 2019. Analysts also expect Snap to post adjusted EPS of -$0.05 in the third quarter, compared wiith -$0.04 in the same period a year ago. Additionally, analysts expect Snap to continue to grow its DAU (daily active user) count in the third quarter, forecasting 15–16 percent growth to 242 million–244 million.

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What is Snap’s stock price?

Snap stock rose 2.7 percent yesterday and closed at $28.06 with a market capitalization of $41.2 billion. The stock has risen by 3.7 percent in the last five days and 103.6 percent in the last year. Snap stock is trading 0.1 percent below its 52-week high of $28.10 and 255.6 percent above its 52-week low of $7.89. Snap doesn’t currently pay a dividend.

What is Snap’s stock forecast?

Currently, analysts' stock price forecast for Snap is $26.87, which suggests a 4.2 percent downside. Their highest target price of $35 implies a 24.7 percent upside, while their lowest target price of $17 suggests a 39.4 percent downside. Of the 36 Wall Street analysts tracking Snap, six recommend "buy," 20 recommend "hold," and ten recommend "sell."

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On Thursday, Doug Anmuth of JPMorgan Chase increased his target price on Snap stock from $28 to $33 and maintained an “overweight” rating on the stock. The analyst believes the company will post strong numbers in the third quarter due to increased user engagement. Anmuth now expects Snap to post sales of $571 million in the third quarter, up from his previous forecast of $554 million.

Snap investor relations

Snap has scheduled a third-quarter earnings conference call on Tuesday, Oct. 20 at 5:00 p.m. ET. Investors and financial analysts can access a live webcast and replay of the earnings conference call on the company’s investor relations website.

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