Twitter (NYSE:TWTR) earnings for the social media company’s third quarter of 2019 have TWTR stock falling hard on Thursday. This is mostly due to its adjusted earnings per share of 14 cents. Unfortunately, this misses Wall Street’s estimate of 20 cents for the quarter. TWTR stock also didn’t get any help from revenue of $823.72 million. This is below analysts’ estimates of $873.04 million for the period.
Lets’ take a closer look at the failure that is the most recent Twitter earnings report.
- Adjusted EPS is down 33.33% YoY compared to 21 cents.
- Revenue is 8.65% higher than it was at the same time last year.
- Income from operations comes in at $44.15 million.
- That’s down 51.94% from the $91.87 million reported in the same period of the year prior.
- The Twitter earnings report also has net income coming in at $36.52 million.
- This is down 95.37% from the company’s net income of $789.18 million in the third quarter of 2018.
Ned Segal, CFO of Twitter, says this about the Q3 TWTR stock earnings.
“Despite its challenges, this quarter validates our strategy of investing to drive long-term growth. More work remains to deliver improved revenue products. We’ll continue to prioritize our ad products along with health and our investments to drive ongoing growth in mDAU.”
The Twitter earnings report notes that the company is expecting to run into trouble during the fourth quarter of 2019. This includes headwinds from its personalization and data settings. The company says that this will likely cause a reduced revenue growth of 4 points or more compared to the same time last year.
TWTR stock was down 20.30% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.