Facebook Earnings Preview: Get Ahead of the Analysts

Facebook (NASDAQ:FB) will report earnings after markets close on Wednesday, July 24th. Facebook, Inc. operates as a social networking company worldwide. The company builds tools that enable users to connect, share, discover, and communicate with each other; enables developers to build social applications on Facebook or to integrate their Websites with Facebook; and offers products that enable advertisers and marketers to engage with its users. As of February 2, 2012, it had 845 million monthly users and 443 million daily users. The company was founded in 2004 and is headquartered in Menlo Park, California.

Here is your Cheat Sheet to Facebook Earnings:

Earnings Expectations: Analysts expect earnings of $0.14 per share on revenues of $1.62 billion. Currently, the company’s P/E ratio stands at 579.35.

Analyst Trends:

Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.14 and has not changed. For the current year, the average estimate is a profit of $0.57, which is the same as the estimate ninety days ago.

Earnings Trends:

Here’s how Facebook has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 272 777 1,974 3,711 5,089
Diluted EPS ($) -0.06 0.10 0.28 0.43 0.01

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 1,184.00 1,262.00 1,585.00 1,458.00
Diluted EPS ($) -0.08 -0.02 0.03 0.09

Past Performance:
Facebook has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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