Earnings Preview: Facebook shares up over 60% since last earnings report

theflyonthewall.com

Facebook (FB) is expected to report Q4 earnings after the market close on Wednesday, January 30 with a conference call scheduled for 5:00 pm ET. Facebook is a social networking service with over 1B active users... EXPECTATIONS: Analysts are looking for EPS of 15c on revenue of $1.53B. The consensus range is 12c-19c for EPS, and $1.41B-$1.70B for revenue, according to First Call... LAST QUARTER: Facebook reported Q3 EPS 12c against estimates of 11c on revenue of $1.26B against estimates of $1.23B. The company also reported monthly active users 1.01B at September 30 with daily active users at 584M. CEO Mark Zuckerberg said the company was deeply integrating monetization into its product teams and said its opportunity on mobile is the most misunderstood aspect. He added that mobile users are more engaged and mobile advertising is similar to TV advertising... STREET RESEARCH AND NEWS: Following the better-than-expected Q3 results and positive news on mobile growth, Facebook has been upgraded at several analyst firms. BofA/Merrill, Stifel Nicolaus, BMO Capital and Morgan Stanley were among the firms that upgraded Facebook, citing its upside of mobile monetization and long term revenue opportunity. Bernstein, in particular, expects revenue growth to exceed estimates in the next 12-24 months. In the past quarter, Facebook also announced partnerships with Bing and Monster Worldwide (MWW) to launch Graph Search and a social jobs app, respectively. After an amendment to its developer addendum with Zynga (ZNGA), the company can now develop its own games. Cantor said the Graph search could be a billion dollar opportunity and Needham upgraded the company based on these new revenue streams... PRICE ACTION: Facebook shares have risen over $11.00, or more than 60%, since the first day of trading following the company's Q3 report. However, in Tuesday midday trading ahead of its Q4 report, Facebook shares are down more than 3%.

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