These Analysts Cut Their Forecasts On Snap After Weak Sales

Snap Inc. SNAP reported worse-than-expected second-quarter revenue results on Thursday.

Snap said second-quarter revenue increased 16% year-over-year to $1.24 billion, missing the consensus estimate of $1.25 billion, according to Benzinga Pro. The social media company reported quarterly earnings of 2 cents per share, in line with analyst estimates.

Daily active users grew 9% year-over-year to 432 million. Monthly active users climbed to 850 million in the quarter.

"Our community grew to reach more than 850 million monthly active users in Q2, with more than 11 million Snapchat+ subscribers," said Evan Spiegel, CEO of Snap.

"We continued to scale our advertising platform with active advertisers more than doubling year-over-year. We are looking forward to hosting our upcoming Snap Partner Summit on September 17th, where we will announce new updates to our service."

Snap said it sees third-quarter revenue in the range of $1.335 billion to $1.375 billion, representing year-over-year revenue growth of 12% to 16%. The company anticipates third-quarter adjusted EBITDA of $70 million to $100 million. Snap noted that its guidance assumes daily active users will be approximately 441 million in the third quarter.

Snap shares fell 3.8% to close at $12.81 on Thursday.

These analysts made changes to their price targets on Snap following earnings announcement.

• JP Morgan analyst Doug Anmuth maintained Snap with an Underweight rating, while cutting the price target from $13 to $11.
• Susquehanna analyst Shyam Patil maintained Snap with a Neutral and lowered the price target from $15 to $12.

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