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The earnings season will continue this week as some big names in technology should release the results, including Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) Facebook [19659005] (NASDAQ: FB) and Twitter . The stakes are high for the three companies. Each outperformed the market in the last 12 months, with Alphabet and Facebook up 21% and 28%, respectively, and Twitter up 116%.
Before reporting on the profits of these companies, here is a quick overview.
Alphabet: Can Google "other" still generate massive growth?
Alphabet, Google's parent company, will start next week with its second quarter update after market closes on Monday. After having recorded a strong 26% increase in sales in Q1 (+ 23% at constant exchange rate) compared to the previous year, investors will expect a stronger growth in the 2nd quarter. On average, analysts expect Alphabet 's second – quarter business figure to grow 24% from one year to the next. For earnings per share of Alphabet, analysts expect $ 9.59, up from $ 8.90 a year ago, after being adjusted to rule out the impact of a European Commission fine accounted for during the period.
Facebook CEO Mark Zuckerberg. Source of the image: Facebook.
The big question for Facebook is how much the earnings per share of the social network will increase. In the past, Facebook has always seen its earnings per share growth surpass its revenue growth as its revenue has grown at a faster rate than operating expenses. But with Facebook spending year-to-year to increase from 50% to 60%, earnings per share growth could slow significantly in the second quarter. On average, analysts expect a 30% increase in Facebook's earnings per share in the second quarter, down from 63% growth in the first quarter.
Twitter: Can it maintain its momentum? for a profit for the first time a few quarters ago, Twitter will have to prove that its positive momentum is here to stay.
Image Source: Getty Images. [19659010] In the first quarter, Twitter's revenue growth rate increased by 21% over the same period last year, up sharply from the 2% growth recorded in the fourth quarter. Even more impressive, Twitter has gone from a net loss of $ 62 million in the first quarter of 2017 to $ 61 million in the first quarter of 2018. This translates to EPS and non-GAAP EPS in the first quarter $ 0.08 and $ 0.16, respectively. For the second quarter of Twitter, the consensus estimate of analysts forecasts a 21% annual revenue growth and non-GAAP EPS of $ 0.17, up from non-GAAP EPS of $ 0.08 in the same quarter of the previous year. 19659005] One of the main areas on which Twitter investors will want to make sure to check is the daily growth of the company's active users. Although the last six consecutive quarters of double-digit annual growth in daily active users are notable, the key measure has slowed over the past three quarters. Twitter's daily active users grew 10% year-over-year in the first quarter, up from 14% in the third quarter of 2017. If the daily growth of Twitter's active users continues to decelerate, this could mean that growth has not yet begun. been only temporary.
Twitter is expected to release its second quarter results before the market opens on Friday, July 27.
Suzanne Frey, a senior at Alphabet, is a board member of The Motley Fool. Daniel Sparks has no position in any of the actions mentioned. The Motley Fool owns shares and recommends Alphabet (A Shares), Alphabet (C Shares) and Facebook. The Fool Motley has a disclosure policy.
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Image Source: Getty Images. [19659010] In the first quarter, Twitter's revenue growth rate increased by 21% over the same period last year, up sharply from the 2% growth recorded in the fourth quarter. Even more impressive, Twitter has gone from a net loss of $ 62 million in the first quarter of 2017 to $ 61 million in the first quarter of 2018. This translates to EPS and non-GAAP EPS in the first quarter $ 0.08 and $ 0.16, respectively. For the second quarter of Twitter, the consensus estimate of analysts forecasts a 21% annual revenue growth and non-GAAP EPS of $ 0.17, up from non-GAAP EPS of $ 0.08 in the same quarter of the previous year. 19659005] One of the main areas on which Twitter investors will want to make sure to check is the daily growth of the company's active users. Although the last six consecutive quarters of double-digit annual growth in daily active users are notable, the key measure has slowed over the past three quarters. Twitter's daily active users grew 10% year-over-year in the first quarter, up from 14% in the third quarter of 2017. If the daily growth of Twitter's active users continues to decelerate, this could mean that growth has not yet begun. been only temporary.
Twitter is expected to release its second quarter results before the market opens on Friday, July 27.
Suzanne Frey, a senior at Alphabet, is a board member of The Motley Fool. Daniel Sparks has no position in any of the actions mentioned. The Motley Fool owns shares and recommends Alphabet (A Shares), Alphabet (C Shares) and Facebook. The Fool Motley has a disclosure policy.
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