Facebook Earnings: Here’s Why Investors are Excited Now

Facebook, Inc. (NASDAQ:FB) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 19.24%.

Facebook, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 58.33% to $0.19 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Rose 53.13% to $1.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Facebook, Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.14. It beat the average revenue estimate of $1.62 billion.

Quoting Management: “We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile,” said Mark Zuckerberg, Facebook founder and CEO. “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”

Key Stats (on next page)…

Revenue increased 24.35% from $1.46 billion in the previous quarter. EPS increased 58.33% from $0.12 in the previous quarter.

Looking Forward: 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 with that ninety days ago.

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

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