Twitter Inc (NYSE: TWTR) is having an overwhelmingly strong time in the pre-market hours this morning, and for good reason. The company reported its earnings for the third quarter, blowing away expectations and causing excitement among investors. Of course, this caused the stock to make a run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:06), TWTR is trading at $19.05 per share after a gain of $1.91 per share or 11.14% thus far today.
TWTR Reports Strong Earnings
As mentioned above, Twitter is having a strong time in the pre-market hours this morning after reporting its earnings for the third quarter. Of course, the report proved to be better than expected. Here’s what we saw:
- Earnings Per Share – In terms of earnings per share, TWTR definitely did not disappoint. During the third quarter, analysts expected that the company would generate earnings in the amount of $0.07 per share. However, the company actually reported earnings in the amount of $0.10, $0.03 higher than analysts expected to see.
- Revenue – Revenue also proved to be a strong figure for the company. During the third quarter, analysts expected that TWTR revenue would come in around $586.73 million. However, the company actually reported revenue in the amount of $589.6 million.
- Daily Active Users – In terms of daily active users, we saw another area where Twitter brought excitement to investors. During the third quarter, Twitter brought in 4 million new users. That represents growth of 14% year over year on daily active users.
- Guidance – Finally, as if strong earnings weren’t enough to bring the excitement, TWTR released overwhelmingly strong guidance. During the fourth quarter, the company is expecting for EBITDA to be between $220 and $240 million with margins ranging between 35% and 36%. Capital expenditures are expected to be no more than $110 million and stock-based compensation expenses are expected to range between $90 million and $100 million.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TWTR. In particular, we’re interested in following the ongoing growth as the company continues to surprise after years of missing the mark with regard to user growth. Nonetheless, over the past several quarters, Twitter has produced exceptional results, and is likely to continue. We’ll continue to watch the story closely and bring the news to you as it breaks!
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