Twitter Trading 7% Higher Ahead of Q1 Earnings, Analysts Weight In

Twitter

is scheduled to report first quarter earnings today after market close. The stock is experiencing an impressive rally as the report nears, up 7 percent to $43.61. The analyst consensus estimates for the quarter are a loss of $0.03 per share, and revenue of $241.47 million. Brian Wieser of Pivotal Research has a sell rating on the stock, but expects revenue of $250 million, above consensus estimates. “Investors will be overly focused on user growth,” similar to last quarter, said the analyst. Should Twitter report insignificant growth, Wieser would not be surprised “given his view of Twitter as a niche consumer proposition in most markets.” Blake Harper of Wunderlich expects the company to beat consensus estimates, “as the company has continued to develop a more sophisticated and broad ad suite that should increase its ad revenue per timeline views.” The Wunderlich analyst believes the biggest problem facing Twitter is challenges growing monthly active users count “above the consensus of 255 million in Q1 (up from 241 million in Q4) and 290 million for 2014.” Topeka analyst Victor Anthony sees the consensus estimates as “reasonable,” and like the Pivotal and Wunderlich analysts, “expects Twitter to exceed those estimates.” According to Anthony, the monthly active user figures “hold less relevance given the product changes.” Anthony also noted the lock-up expiration next week “will likely add to the volatility in the stock.”