What To Expect From Twitter's Q3 Earnings

Twitter Inc TWTR is scheduled to announce Q3 2014 earnings after the market close on Monday.

Analysts largely estimated revenue to come in at $351 million, with the range being $332 million to $378 million. The average EBITDA estimate was close to $53 million.  

EPS estimates averaged $0.01 with Wunderlich forecasting $0.03, although the firm felt the stock was hard to buy at the current levels.

Citi analyst Mark May noted that while the company "has many of the attractive growth characteristics we like, we believe it’s current valuation already reflects long-term bull-case assumptions for key metrics like user growth and monetization."

With some concern over valuation, MAU (Monthly Active User) growth is a critical area as it ultimately drives ad revenue.

Total MAUs were estimated at 284 million. Q3 MAU growth was estimated by MKM at 18 million, Sterne Agee forecasted 14 million and CRT Capital was looking for 10 million. Anything below 14 million may be viewed as a miss.

Many analysts did predict that the company would beat estimates Monday. SunTrust analyst Robert S. Peck commented, "We think it is likely the company will beat the consensus Ad Revenue, Total Revenue, and EBITDA estimates of $315m, $351m and $53m, as our conversations with marketers have been positive during the quarter."

Twitter Inc recently traded at $48.62, down 2.66 percent.