Facebook Earnings: What to Look For From FB

Facebook Inc. (FB) is coming disconnected of 2 consecutive quarters of robust nett and gross gains, and present is focusing connected the adjacent signifier of longterm maturation for the company. Chief Executive Officer (CEO) Mark Zuckerberg says that maturation volition beryllium driven by the "metaverse," an expansive virtual satellite that volition beryllium a successor to the mobile net and substance a caller question of exertion investment. In the virtual metaverse, for example, radical would beryllium capable to effort connected apparel featured successful stores oregon spell to concerts with friends, conscionable arsenic they would successful the existent world. Facebook plans to make arsenic galore arsenic 10,000 jobs successful the European Union implicit the adjacent 5 years to physique the metaverse.

Investors are apt to absorption some connected Facebook's caller fiscal show and aboriginal maturation plans erstwhile the institution reports net connected Oct. 25, 2021 for Q3 FY 2021. Analysts expect net per stock (EPS) and gross to turn astatine a accelerated pace, albeit slowing from the gait successful caller quarters.

Investors volition besides beryllium focusing connected Facebook's monthly progressive users (MAUs), a cardinal metric that measures the size of the company's idiosyncratic base. Analysts expect the company's MAUs to emergence compared to the year-ago quarter, but the gait of maturation is expected to slow.

Shares of Facebook person underperformed the broader marketplace implicit the past year. The banal outperformed from astir precocious May to aboriginal October aft lagging the marketplace for astir of the the past 12 months. But successful caller weeks the banal has begun to underperform the marketplace again. Facebook's shares person provided a full instrumentality of 27.4% implicit the past year, beneath the S&P 500's full instrumentality of 31.8%.

Facebook Earnings

Facebook reported Q2 FY 2021 earnings that bushed analysts' estimates. EPS roseate 100.9% compared to the year-ago quarter, the fastest gait since Q1 FY 2020. Revenue grew 55.6% YOY, the fastest gait since the 3rd 4th of FY 2016. The institution said successful its net study that it expects 3rd and 4th fourth results to decelerate importantly connected a sequential basis.

In Q1 FY 2021, Facebook reported net and gross that bushed statement estimates. EPS accrued 92.8% YOY, accelerating for the 2nd consecutive 4th successful a row. Revenue expanded 47.6% compared to the year-ago quarter, marking the fastest gait of maturation since Q1 FY 2018. In its net report, the institution highlighted its beardown advertisement gross growth, which was driven by increases successful the mean terms per advertisement arsenic good arsenic the full fig of ads delivered.

Analysts expect Facebook's net and gross to proceed increasing successful Q3 FY 2021, albeit astatine a decelerating gait compared to caller quarters. EPS is expected to emergence 17.7%, the slowest maturation successful 7 quarters. And gross is expected to emergence 37.6%, a deceleration from the erstwhile 2 quarters. For full-year FY 2021, EPS is expected to summation 40.1%, slowing from a gait of 57.1% successful FY 2020. Annual gross is expected to grow 39.1%, which would beryllium the fastest gait of maturation since FY 2017.