Facebook Earnings: Here’s Why the Stock is Up Now

Facebook, Inc. (NASDAQ:FB) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1%.

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Facebook, Inc. Earnings Cheat Sheet

Revenue: Rose 37.81% to $1.46 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Facebook, Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company missed the mean analyst estimate of $0.13. It beat the average revenue estimate of $1.44 billion.

Quoting Management: “We’ve made a lot of progress in the first few months of the year,” said Mark Zuckerberg, Facebook founder and CEO. “We have seen strong growth and engagement across our community and launched several exciting products.”

Key Stats (on next page)…

Revenue decreased 8.01% from $1.59 billion in the previous quarter. EPS decreased 29.41% from $0.17 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 has moved down from a profit of $0.58 to a profit of $0.57 over the last ninety days.

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

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