Facebook Inc. (NASDAQ: FB) is scheduled to release its first-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters call for earnings per share (EPS) of $0.62 on $5.26 billion in revenue. In the same period of last year, the company posted $0.42 in EPS on $3.54 billion in revenue.
The huge social media leader last posted gigantic numbers that truly blew away most of Wall Street. Facebook has Instagram, in which some analysts see revenues tripling in 2017 over 2016, and Premium video and Graph Search capabilities to strengthen the social media giant’s earnings flow. Top analysts have noted in the past that Facebook and Instagram account for 5% of users total media time, but the company doesn’t come close to capturing 5% of total advertising budgets. Instagram advertising opened up in the fourth quarter. The company reported revenues for that period that were 10% ahead of many Wall Street estimates.
Most Wall Street analysts point to the fact that Facebook remains the top beneficiary of the adoption of mobile internet trends with total U.S. internet time spent on Facebook and Messenger. Other metrics continue to explode, and the key is that no viable challengers are anywhere in sight. Wedbush thinks the company once again beats estimates, citing the mobile advertising growth and overall innovation at the company.
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