Twilio Inc. TWLOis slated to release first-quarter 2018 results on May 8. In the last-reported quarter, the company posted narrower-than-expected loss, resulting in a positive surprise of 50%. Notably, Twilio delivered better-than-expected results in the trailing four quarters, with an average positive surprise of 36.
9%.Let’s see how things are shaping up prior to this announcement.
What the Zacks Model Unveils?
Our proven model does not conclusively show that Twilio is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here .
It should be noted that stocks with a Zacks Rank #4 or 5 (Sell rated) are best avoided, especially when the company is seeing negative estimate revisions.
Twilio currently carries a Zacks Rank of 3 and has an Earnings ESP of -21.62%, which makes surprise prediction difficult. Furthermore, the Zacks Consensus Estimate for first-quarter earnings remained unchanged, over the past 30 days.
In addition, the Zacks Consensus Estimate projects loss per share to widen to 7 cents from the year-ago quarter’s loss of 4 cents. However, analysts polled by Zacks anticipate revenues to be up 32.6% year over year to $115.9 million.
We believe Twilio’s top line will reflect the benefit from its continued focus on rolling out products, global expansion and go-to-market sales strategies, which will have more than offset the loss of revenues from troubles with one of its major customer. However, the company’s bottom-line results might have been affected by escalating expenses.