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Wed, February 8 at 8:00PM ET

SNAP News: Why SNAP Stock Is Soaring Today

Strong earnings results from Snap (NYSE:SNAP) are sending SNAP stock to new heights on Wednesday.

An apple iPhone showing the snapchat application alongside other snapchat logos

Source: Ink Drop / Shutterstock.com

The parent company for Snapchat announced its earnings for the third quarter of fiscal year 2020 on Tuesday evening. Many were happy with the results, as shares of SNAP stock are hitting all-time highs.

Overall, Snap reported earnings per share (EPS) of 1 cent and revenue of $678.67 million for the quarter. Meanwhile, Wall Street analysts were expecting losses per share of 5 cents and revenue of $549.99 million.

Here are a few other important things to know about the SNAP stock earnings:

  • Adjusted EPS is up 120% from per-share losses of 4 cents during Q3 2019.
  • Revenue for the quarter comes in 52% higher than the $446.2 million during the same time last year.
  • Operating loss of $167.86 million is up 27% year-over-year from a loss of $228.85 million.
  • The Snap earnings report also includes a net loss of $199.85 million.
  • That’s 12% better than $227.38 million from the third quarter of 2019.

Evan Spiegel, CEO of Snap, said this about the SNAP stock earnings report:

“Our focus on delivering value for our community and advertising partners is yielding positive results during this challenging time. We’re excited about the growth of our business in Q3 as we continue to make long-term investments in our future. The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us.”

The Snap earnings report does mention it is not including guidance for the fourth quarter of 2020. This is due to the ongoing effects of the novel coronavirus. Meanwhile, Wall Street is looking for EPS of 2 cents on revenue $721.48 million.

SNAP stock was up more than 30% on Wednesday.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Nick is a web editor at InvestorPlace.

Article printed from InvestorPlace Media, https://investorplace.com/2020/10/snap-news-why-snap-stock-is-soaring-today/.

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