What to Expect When Facebook Reports After the Close

July 25, 2018 by Chris Lange

Facebook Inc. (NASDAQ: FB) is scheduled to release its second-quarter financial results after the markets close on Wednesday. The consensus estimates from Thomson Reuters call for $1.72 in earnings per share (EPS) and $13.36 billion in revenue. In the same period of last year, the social media leader said it had EPS of $1.32 and $9.32 in revenue.

Facebook is the largest social network, with over 2.0 billion monthly active users and over 1.4 billion daily active users. The company generates revenue from advertising and from payments, with over 95% of revenue from advertising. It generates close to 50% of revenues in the United States and Canada and is expanding rapidly in international markets.

Its solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application for mobile and web on various platforms and devices, which enables people to reach others instantly, as well as enables businesses to engage with customers; and WhatsApp Messenger, a mobile messaging application.

Overall, Facebook has outperformed the broad markets, with its stock up about 29% in the past 52 weeks. In just 2018 alone, the stock is up roughly 22%.

A few analysts weighed in on Facebook ahead of the report:

  • BMO Capital Markets has a Hold rating and a $210 price target.
  • JPMorgan has a Buy rating with a $242 price target.
  • Goldman Sachs has a Buy rating with a $225 target.
  • Macquarie has a Buy rating with a $220 target price.
  • Merrill Lynch has a Buy rating and a $220 target price.
  • Wedbush has an Outperform rating with a $275 target.

Shares of Facebook were last seen trading at $216.15, with a consensus analyst price target of $233.08 and a 52-week range of $149.02 to $216.61.

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