Did Snap's Prospects Worsen After Its Latest Warning to Investors?
Snap (NYSE: SNAP) is scheduled to report fiscal 2022 second-quarter earnings after the markets close on Thursday, July 22. The social media company faces headwinds that are causing revenue growth to slow. These include privacy policy changes from Apple (NASDAQ: AAPL) that make it more challenging to sell targeted advertising, a slowdown in advertising demand amid the Russian invasion of Ukraine, supply shortages, and rising inflation.
Management already gave investors a mid-quarter warning that the period was progressing considerably worse than expected. Shareholders will want to pay close attention to see if Snap's quarter worsened further after it updated investors on May 23.
On that day, the company informed the market that macroeconomic conditions had worsened quickly since it issued projections on April 21. They added that those forces would likely cause Snap to miss even the lower end of its revenue and profitability forecast for the second quarter. With its first-quarter earnings, management said revenue growth in the second quarter would be in the range of 20% to 25% at the midpoint. Meanwhile, it said adjusted earnings before interest, taxes, depreciation, and amortization would fall between breakeven and $50 million.
Source Fool.com
