Facebook Inc. (NASDAQ: FB) reported fiscal second-quarter financial results after the markets closed on Wednesday, and it may have been one of the best earnings reports that the company has seen. Now, shares are just off their off their all-time highs and analysts are practically salivating over this stock.
24/7 Wall St. has included a few key highlights from the earnings report, then added what a couple of analysts are saying about Facebook after earnings.
Perhaps the biggest announcement from the report was that the Facebook’s board of directors had approved a proposal “to amend and restate” its existing certificate of incorporation to create a new class of non-voting capital stock, known as the Class C capital stock. In other words, Facebook is taking a similar approach to that which Google — now Alphabet Inc. (NASDAQ: GOOGL) — has taken to restructure its shares and create multiple classes of stock.
The whole point of the restructuring is to create a capital structure that will allow the company to remain focused on its long-term vision or objectives. However, the adoption of the proposal is still subject to the approval of its shareholders at the 2016 Annual Meeting of Stockholders, which is scheduled be held on June 20.
The social network said it had $0.77 in earnings per share (EPS) on $5.4 billion in revenue, versus Thomson Reuters consensus estimates that called for $0.62 in EPS on revenue of $5.26 billion. In the same period of last year, the social media giant posted EPS of $0.42 and $3.54 billion in revenue.
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