Twilio (TWLO) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates Twilio (TWLO) to report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended December 2024 [1][2]. Earnings Expectations - Twilio is expected to post quarterly earnings of $1.02 per share, reflecting an 18.6$1.17 billion, which is a 9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - The Most Accurate Estimate for Twilio is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.28% [10]. Zacks Rank and Predictive Power - Twilio currently holds a Zacks Rank of 1 (Strong Buy), suggesting a high likelihood of beating the consensus EPS estimate [11]. - A positive Earnings ESP combined with a strong Zacks Rank historically leads to a positive surprise nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Twilio exceeded the expected earnings of $0.87 per share by delivering$1.02, resulting in a surprise of +17.24% [12]. - Over the past four quarters, Twilio has consistently beaten consensus EPS estimates [13]. Industry Context - In the Zacks Internet - Software industry, Rapid7 (RPD) is expected to report earnings of $0.50 per share, indicating a year-over-year decline of 30.6$212.25 million, reflecting a 3.4% increase from the previous year [17]. - The consensus EPS estimate for Rapid7 has been revised 1% lower in the last 30 days, resulting in a negative Earnings ESP of -0.40% [18].