Twitter (TWTR) will second quarter report earnings tomorrow before the open. There is a conference call scheduled for 8:00 ET.

Q2 Capital IQ consensus calls for EPS of $0.19 (+12% yr/yr) on revenue of +16% yr/yr to $828.1 mln.

The Street is looking for Q2 monetizable daily active users (mDAU) of 137 mln, or +11% yr/yr.

The company is expected to provide guidance for the third quarter where Capital IQ consensus calls for EPS of $0.21 (in line with last year) on revenue of $870.0 mln (+15% yr/yr).

Twitter has not missed EPS or revenue in several years.


Based on the weekly TWTR Jul26 $38 straddle, the options market is currently pricing in a move of ~10% in either direction by weekly expiration (Friday).

On a positive report, look for resistance near the $40.50-41.00 area, while support sits near the $35.00-35.50 vicinity.

TWTR had a market cap of $29.4 bln and trades at 20 times EV EBITDA which is a sizable premium to FB and GOOG. The 7 times revenue multiple is on par with FB and a notable discount to SNAP and PINS.


Twitter trading 6% higher following positive second quarter results

  • Twitter (TWTR) shares are 6% higher after the company reported upside to second quarter operating income, revenue and users, but revenue and operating income guidance for the third quarter were a little light.

  • All in, the report is encouraging considering the company tends to guide conservatively.

  • Second quarter operating income fell 5% to $75.7 mln vs. $35-70 mln guidance. The company reported Q2 GAAP EPS of $1.43; excluding a significant income tax benefit related to the establishment of a deferred tax asset for corporate structuring for certain geographies, adjusted EPS was $0.05 vs. the $0.19 S&P Capital IQ Consensus; CNBC is reporting adj. EPS of $0.20, but it is unclear how they are getting to that figure.

  • Revenue grew 18% to $841 mln, above the $770-830 mln guidance and the $828 mln consensus.

  • User growth, which is lagging social media peers is a key metric, came in better than expected. Average monetizable daily active usage (mDAU) was 139 mln vs. 137 mln consensus, up 5 mln sequentially. That is the second consecutive quarter where users beat, which may get investors excited.

  • The company guided Q3 revs to $815-875 mln vs. $870.03 mln S&P Capital IQ Consensus and operating income $45-80 mln vs. estimates near $87 mln. Twitter tends to guide conservatively.

  • Twitter IR earnings tweet thread

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