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What Twitter's Earnings Mean for Mutual Fund Investors (TWTR)

After the closing bell on Thursday, Twitter (TWTR) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.

Inside TWTR’s Results

Net Loss

The company reported a net loss of $125.4 million, or 20 cents per share, compared to a net loss of $511.5 million, or $1.41 per share, last year. Excluding special items, earnings were $79.3 million, or 12 cents per share, up from $9.8 million, or 2 cents per share, in the same quarter last year. On average, analysts expected to see adjusted EPS of 6 cents.

Revenue
Revenue surged 97% to $479.08 million from $242.68 million last year. Analysts expected to see revenue of $453.14 million.

Outlook
Looking ahead to the first quarter, TWTR expects to see revenue between $440 million and $450 million. For the full year, revenue is expected to be between $2.30 billion and $2.35 billion. Analysts expect to see Q1 revenue of $449.68 million and $2.3 billion for the year.

Revenue Growth in the Spotlight

Wall Street reacted well to TWTR’s report, as shares rose 14% on Friday morning. Although the company posted impressive revenue and an in-line outlook, future growth depends on its ability to grow advertising sales.

From a valuation standpoint, Twitter is growing at about 90x 2015 earnings estimates, which is a decent valuation considering its revenue growth. This stock is ideal for more aggressive investors who are willing to take on risk.

Mutual Funds to Watch

Investors seeking exposure to TWTR may want to consider the funds below. These funds currently have the largest stakes in the company.

The Bottom Line

By investing in one of the funds listed above, investors are exposed to a broad range of holdings and industries. Investors interested in TWTR may also be interested in Facebook (FB) and Google (GOOG).

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What Twitter's Earnings Mean for Mutual Fund Investors (TWTR)

After the closing bell on Thursday, Twitter (TWTR) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.

Inside TWTR’s Results

Net Loss

The company reported a net loss of $125.4 million, or 20 cents per share, compared to a net loss of $511.5 million, or $1.41 per share, last year. Excluding special items, earnings were $79.3 million, or 12 cents per share, up from $9.8 million, or 2 cents per share, in the same quarter last year. On average, analysts expected to see adjusted EPS of 6 cents.

Revenue
Revenue surged 97% to $479.08 million from $242.68 million last year. Analysts expected to see revenue of $453.14 million.

Outlook
Looking ahead to the first quarter, TWTR expects to see revenue between $440 million and $450 million. For the full year, revenue is expected to be between $2.30 billion and $2.35 billion. Analysts expect to see Q1 revenue of $449.68 million and $2.3 billion for the year.

Revenue Growth in the Spotlight

Wall Street reacted well to TWTR’s report, as shares rose 14% on Friday morning. Although the company posted impressive revenue and an in-line outlook, future growth depends on its ability to grow advertising sales.

From a valuation standpoint, Twitter is growing at about 90x 2015 earnings estimates, which is a decent valuation considering its revenue growth. This stock is ideal for more aggressive investors who are willing to take on risk.

Mutual Funds to Watch

Investors seeking exposure to TWTR may want to consider the funds below. These funds currently have the largest stakes in the company.

The Bottom Line

By investing in one of the funds listed above, investors are exposed to a broad range of holdings and industries. Investors interested in TWTR may also be interested in Facebook (FB) and Google (GOOG).

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Read Next