Preview: Snap's Earnings

Snap SNAP is gearing up to announce its quarterly earnings on Tuesday, 2025-04-29. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Snap will report an earnings per share (EPS) of $0.04.

Snap bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

The company's EPS beat by $0.02 in the last quarter, leading to a 8.36% drop in the share price on the following day.

Here's a look at Snap's past performance and the resulting price change:

Performance of Snap Shares

Shares of Snap were trading at $8.54 as of April 25. Over the last 52-week period, shares are down 41.4%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Insights Shared by Analysts on Snap

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Snap.

The consensus rating for Snap is Neutral, based on 17 analyst ratings. With an average one-year price target of $10.76, there's a potential 26.0% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Pinterest, Reddit and ZoomInfo Technologies, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Pinterest, with an average 1-year price target of $42.18, suggesting a potential 393.91% upside.
• Analysts currently favor an Outperform trajectory for Reddit, with an average 1-year price target of $177.19, suggesting a potential 1974.82% upside.
• Analysts currently favor an Neutral trajectory for ZoomInfo Technologies, with an average 1-year price target of $11.0, suggesting a potential 28.81% upside.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Pinterest, Reddit and ZoomInfo Technologies, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Snap is positioned in the middle among its peers for revenue growth, with one peer showing the highest growth rate. Snap ranks at the bottom for gross profit, with one peer having the highest gross profit. In terms of return on equity, Snap is at the bottom, with one peer having the highest return. Overall, Snap's performance is relatively moderate compared to its peers in these key metrics.

Unveiling the Story Behind Snap

Snap is a technology company best known for its marquis social media application Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.

Snap's Economic Impact: An Analysis

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Snap's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 14.4%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Snap's net margin is impressive, surpassing industry averages. With a net margin of 0.58%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Snap's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.39%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.12%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 1.73, Snap faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Snap visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.