Cloud communications firm Twilio (NYSE:TWLO) is about to report its second quarter outcomes on August 1st, 2024, Thursday, with traders specializing in the corporate’s communications income progress through the second half of the 12 months.
Wall Avenue expects the San Francisco, California-based firm to put up a second-quarter earnings per share of $0.70 on income of $1.06 billion. The inventory has misplaced 22.06% to this point this 12 months, in comparison with the 15.76% rise within the broader S&P500 Index.
The corporate had beat topline and bottom-line estimates in its first quarter earnings, together with elevating its profitability outlook for 2024, and preserving its income steering unchanged.
“Given the continued difficult macro surroundings, intensifying competitors within the core Communications enterprise, the potential for the deal with cost-cutting inside Phase to disrupt progress, and divestiture headwinds, we expect full 12 months steering could also be at-risk,” stated analysts at Capital Markets.
The analysis agency had stated that it sees room for additional downward revisions in opposition to a difficult 2H setup, anticipating a second-quarter beat in keeping with current tendencies, and a reiteration of full 12 months steering.
“We anticipate Twilio Communications income to proceed decelerating year-over-year at 7% progress in Q2 2024,” in response to analysts at KeyBanc.
Earlier in June, Morgan Stanley had downgraded the communications software program participant, citing a scarcity of prime line catalysts over the following 12 months and the truth that the “majority” of working leverage has been achieved.
“We nonetheless just like the long-term story, however given client well being overhang, we see extra engaging risk-rewards,” analyst Meta Marshall wrote in a be aware to purchasers.
Over the past two years, Twilio has beat EPS estimates 100% of the time and has crushed income estimates 100% of the time.
Searching for Alpha analysts are bullish and rated the inventory as a Purchase. Nonetheless, Wall Avenue is cautious and considers the inventory a Maintain. Searching for Alpha’s Quant Rankings considers the inventory a Sturdy Purchase, with a rating of 4.61 out of 5.
Over the past three months, EPS estimates have been revised upward 19 instances, in comparison with 5 downward revisions, whereas income estimates has seen 1 upward revisions versus 23 downward strikes.