Twitter (TWTR) Gains Ahead of Q2 Print

Twitter (NYSE: TWTR) is gaining sharply (+3.7%) ahead of earnings after the close. Analysts on average are looking for EPS of $0.04 on revenues of $481.28 million, representing growth of 100% and 54%, respectively.

Despite the year-over-year growth, Wall Street is very cautious going into the quarter. The revenue consensus is near the middle of the company's own $470-$485 million range, a revenue guide-down is expected, in addition to negative MAU additions.

Deutsche Bank analyst Ross Sandler recently commented that despite the negative sentiment, the quarter might be OK. "We think investors are bracing for another challenging quarter for Twitter, but similar to the two prior bear-raids, we don’t see reality as nearly as bad as current sentiment," he said. Sandler thinks MAUs won't be as bad as feared and revenue may actually be fine in 2015.

In addition to financial and user data, investors will looking for comments on the CEO search.

Twitter has a history of volatility following its earnings report. Last quarter the stock fell 23% in the trading session immediately following earnings. Notably, earnings leaked out mid-day last quarter. In the previous quarter, the stock rose 17% in the session immediately following earnings.

You May Also Be Interested In

• Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
• Charter Communications (CHTR) Misses Q1 EPS by 31c
• Barnes Group (B) Tops Q1 EPS by 2c; Raises guidance