All eyes on Twitter and Apple as big two report latest set of results

Jack Dorsey hopes for turnaround while iPhone sales will be scrutinised

Twitter chief executive Jack Dorsey: called recent performance “unacceptable”. Photograph: Bryan Thomas/The New  York Times

Twitter chief executive Jack Dorsey: called recent performance “unacceptable”. Photograph: Bryan Thomas/The New York Times

 

Investors will be keen to hear what new Twitter chief executive Jack Dorsey has to say about the way forward for the social network, when the company announces third-quarter results tomorrow.

The company recently said it was planning to lay off 8 per cent of its workforce, with the deepest cuts in the product and engineering teams.

“We feel strongly that engineering will move much faster with a smaller and nimbler team,” Dorsey said in a letter to employees. “And the rest of the organization will be streamlined in parallel.”

During the second quarter earnings call, Dorsey was very critical of the company, saying Twitter’s recent performance was “unacceptable”.

The company has had massive growth in revenues, with a 63 per cent increase in the second quarter of this year compared with the same quarter in 2014. However, it still hasn’t turned a profit since going public.

Analysts are expecting Twitter to come out with revenues of $559 million for the third quarter. Twitter expects its third-quarter earnings to be at or above its forecast, which at the high end is an estimated $560 million in revenue and adjusted earnings of $115 million.

Apple is also due to report results tomorrow, with analysts expecting fourth-quarter earnings per share to increase to $1.87 from $1.42 a year ago, and revenue to grow to $51 billion compared with $42 billion a year ago.

Apple itself expects revenues of between $49 million and $51 million and a gross margin between 38.5 per cent and 39.5 per cent.

The earnings report will also provide a look at sales of the iPhone 6s and 6s Plus, which sold 13 million devices during the launch weekend alone.