When? Before Market Open Thursday October 27
This report could represent a big turning point for Twitter. Shares of the struggling social media company shot up a month ago on rumours that the company could be up for sale but as rumoured potential suitors like Disney, Google, Salesforce.com and others have steadily been ruled out of the running, the shares have been falling back to Earth.
Interestingly, Twitter usually announces its earnings after market close like other technology companies, but has suddenly moved its report up to the morning. This has sparked some speculation that the company could be preparing to announce a takeover or going private arrangement.
If Twitter does continue as a standalone company, press reports suggest it could be planning to lay off about 300 people or 8% of its staff to cut costs.
Last quarter, Twitter’s shares gapped downward following a disappointment on sales even though earnings had exceeded expectations. Currently, the shares are trading within that gap, indicating that expectations are relatively low and that much of the takeover speculation has come out of the shares.
This time around the street is expecting Twitter to post adjusted EPS of $0.08 down from $0.13 last quarter, while sales of $605 million would be up slightly from $601 million last quarter.
Still, the main focus is likely to be on whether Twitter is about to be sold or continue on alone and if it does, what steps it plans to take to reignite growth or control costs. Recently trading near $18.00, the shares could move to test $13.50 or $20 depending on the news.