Facebook Second-Quarter Earnings: What To Watch

Wall Street is expecting another strong quarter for Facebook FB +0.35%, as the social network continues to grow its massive mobile advertising business and add users across its suite of apps.

Analysts polled by Yahoo YHOO +1.60% Finance expect adjusted earnings for the second quarter, ending June 30, of 81 cents, up from 50 cents in the same period last year, and revenue of $6.01 billion, up 48.8% from the same period a year earlier when Facebook reported revenue of $4.04 billion, beating estimates.

For the full year, the same analysts expect revenue of $26.2 billion, and earnings, excluding some items, of $3.57 per share.

Facebook shares closed on Tuesday at $121.22, and the stock is up about 15.8% since the beginning of this year as of Tuesday’s close. Facebook stock has risen more than 10% since the company last reported earnings in April, compared to a 3.5% gain in the S&P over the same period. Facebook is set to report earnings after the markets close on Wednesday.

Facebook held its annual stockholder meeting on June 20, when it voted for the creation of a non-voting Class C share, which allows CEO Mark Zuckerberg to retain control of the company while giving away shares to charity. The company also re-elected its current board of directors. Zuckerberg holds more than 60% of the controlling votes.

Investors will be eager to hear any insights Facebook shares on its plans to use messaging platforms, Oculus VR and Instagram as growth catalysts, especially as Facebook’s original social networking play faces competition from younger, video-first apps like Snapchat. Brexit could also affect Facebook’s future growth.

Read Full Article: http://www.forbes.com/sites/kathleenchaykowski/2016/07/27/facebook-second-quarter-earnings-what-to-watch/

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