Snap Earnings Preview: What to Expect and How the Stock Might React
Snap (NYSE:SNAP) is set to report its earnings on Tuesday, April 29, 2025. Historically, over the past five years, the stock has experienced a negative one-day return following 61% of its earnings announcements. These negative returns have shown a median of a large -17% and a maximum of a whopping -39%. These figures illustrate the significant volatility Snap stock typically experiences following its earnings announcements.
Analysts’ consensus estimates for the upcoming report indicate earnings per share (EPS) of $0.04 on sales of $1.35 billion. This represents a growth compared to the same period last year, when Snap reported EPS of $0.03 on sales of $1.19 billion. This anticipated performance is likely fueled by the continued growth in the company’s paid subscriptions.
For event-driven traders, understanding Snap’s historical post-earnings stock reaction can be valuable. The immediate market response will depend on how the actual results and future outlook compare to investor expectations. However, analyzing past performance offers two potential strategies:
- Pre-Earnings Positioning: By understanding the historical probability of a negative one-day return, traders can position themselves accordingly before the earnings announcement.
- Post-Earnings Trading: Examining the correlation between the immediate stock reaction and medium-term returns after earnings can inform trading decisions one day following the announcement.
From a fundamental perspective, Snap currently has a market capitalization of $14 billion. Over the past twelve months, the company generated $5.4 billion in revenue but experienced operational losses of $787 million and a net loss of $698 million.
That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
See earnings reaction history of all stocks

Image by MrJayW from Pixabay
Snap’s Historical Odds Of Positive Post-Earnings Return
Some observations on one-day (1D) post-earnings returns:
- There are 18 earnings data points recorded over the last five years, with 7 positive and 11 negative one-day (1D) returns observed. In summary, positive 1D returns were seen about 39% of the time.
- However, this percentage decreases to 10% if we consider data for the last 3 years instead of 5.
- Median of the 7 positive returns = 24%, and median of the 11 negative returns = -17%
Additional data for observed 5-Day (5D), and 21-Day (21D) returns post earnings are summarized along with the statistics in the table below.

SNAP 1D, 5D, & 21D Post Earnings Return
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively less risky strategy (though not useful if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, find a pair that has the highest correlation, and execute the appropriate trade. For example, if 1D and 5D show the highest correlation, a trader can position themselves “long” for the next 5 days if 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns.

SNAP Correlation Between 1D, 5D and 21D Historical Returns
Is There Any Correlation With Peer Earnings?
Sometimes, peer performance can have influence on post-earnings stock reaction. In fact, the pricing-in might begin before the earnings are announced. Here is some historical data on the past post-earnings performance of Snap stock compared with the stock performance of peers that reported earnings just before Snap. For fair comparison, peer stock returns also represent post-earnings one-day (1D) returns.

SNAP Correlation With Peer Earnings
Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), to produce strong returns for investors. Separately, if you want upside with a smoother ride than an individual stock like Snap, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates