FN

Fabrinet

81.10
USD
-1.01%
81.10
USD
-1.01%
74.57 126.28
52 weeks
52 weeks

Mkt Cap 2.98B

Shares Out 36.80M

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What's in the Offing for Twilio (TWLO) This Earnings Season?

Twilio Inc. TWLO is scheduled to report first-quarter 2022 results on May 4. In the first quarter of 2022, Twilio anticipates revenues in the range of $855 million-$860 million. The Zacks Consensus Estimate for the same is pegged at $861.6 million, indicating an improvement of 46% from the year-ago quarter. The cloud-based communications platform-as-a-service provider expects a non-GAAP loss between 22 cents and 26 cents per share. The consensus mark for the non-GAAP loss stands at 23 cents per share, suggesting a drastic increase from the year-ago quarter’s loss of 5 cents. Twilio’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 70.7%. Let’s see how things have shaped up before this announcement. Factors to Note Twilio’s first-quarter results are likely to reflect gains from accelerated digital transformation projects across several industries amid the ongoing pandemic. Organizations have been reconfiguring their set-up for a work-from-home operational environment to make nearly 100% e-commerce a reality. The company’s revenues are likely to reflect the contributions of its latest buyouts, including Zipwhip and Segment. Since the buyout, Segment has been aiding TWLO in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base might have favored the first-quarter performance. In the last reported quarter, Twilio added around 6,000 new clients, taking the total active customer count to more than 256,000. In the first quarter, the company’s increasing scope among the leading enterprises is likely to have acted as a key tailwind. Solutions like Journeys, Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API might have contributed to the first-quarter performance. The company’s efforts to fortify its global footprint may get reflected in the to-be-reported quarter's results. However, increased spending and investments in enhancing the product portfolio and expanding across newer markets might have negatively impacted Twilio’s profitability. Also, elevated expenses for enhancing sales capabilities might have weighed on the first quarter’s bottom line. What Our Model Says Our proven model does not conclusively predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. Though Twilio currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Stocks With the Favorable Combination Per our model, Fabrinet FN, ON Semiconductor ON and Simon Property Group SPG have the right combination of elements to post an earnings beat in their upcoming releases. Fabrinet is slated to report third-quarter fiscal 2022 results on May 2. The company carries a Zacks Rank #2 and has an Earnings ESP of +0.87% at present. Fabrinet’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.9%. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for quarterly earnings is pegged at $1.53 per share, suggesting a year-over-year improvement of 26.5%. FN’s quarterly revenues are estimated to increase 20.1% year over year to $575.7 million. ON carries a Zacks Rank #3 and has an Earnings ESP of +6.67%. The company is scheduled to report first-quarter 2022 results on May 2. ON’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.3%. The Zacks Consensus Estimate for ON’s first-quarter earnings is pegged at $1.05 per share, indicating a year-over-year increase of a whopping 200%. The consensus mark for revenues stands at $1.91 billion, suggesting a year-over-year increase of 28.7%. Simon Property currently carries a Zacks Rank #3 and has an Earnings ESP of +0.50%. The company is slated to report its first-quarter 2022 results on May 9. Simon Property’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.9%. The Zacks Consensus Estimate for Simon Property’s first-quarter earnings stands at $2.74 per share, implying a year-over-year increase of 10.5%. SPG is estimated to report revenues of $1.33 billion, which suggests growth of 7.3% from the year-ago quarter. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Fabrinet (FN): Free Stock Analysis Report ON Semiconductor Corporation (ON): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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