Bookmark and Share

Facebook Beats Q2 Estimates as Mobile Ads Revenue Soar (FB)

Shares of Facebook Inc. (NASDAQ: FB) soared in afterhours trading on Wednesday as the social networking giant’s fiscal second quarter results topped analysts’ consensus estimate, aided by rising revenue from mobile ads business. For the fiscal second quarter, the Menlo Park CA based Company reported adjusted earnings of 19 cents a share compared to 12 cents a share, in the year-earlier quarter. Analysts polled by Thomson Reuters had forecasted earnings of 14 cents a share. Revenue jumped 53% to $1.81 billion from $1.18 billion, in the same quarter of last year. Analysts’ consensus estimate was for revenue of $1.62 billion. Revenue from advertising stood at $1.60 billion with income from mobile ads accounting for 41% of the total ad-revenue in the fiscal second quarter. In the previous quarter, revenue from mobile-ads made up only 30% of the total advertising revenue. Commenting over sharp jump in mobile-ads revenue, Facebook’s Chief Financial Officer, David Ebersman said to CNBC, “The investments we have made over the past year are really paying off to position the company to thrive in a mobile world.” “The company is successfully making the transition to mobile and new ad formats are working really well. Facebook’s ad exchange works really well,” commented Arvind Bhatia, an analyst at Sterne Agee, according to Reuters. Monthly active users climbed 51% in the recently concluded quarter, YOY, to 819 million while daily mobile active users were 469 million in the month of June. Meanwhile, daily active users rose 27% to 699 million on average in June while monthly active users averaged 1.15 billion, in the recently concluded quarter. Facebook shares climbed 16.75% in afterhours trading to $30.95, having gained 1.45% in regular trading hours on Wednesday. The stock crossed $30.00 level mark for the first time since February amid heavy volume trading. Facebook’s stock last closed above $30.00 on January 31.  

Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

All stories in are for informational purposes only. This is NOT a stock recommendation. This story is a daily light analysis featuring a stock with insider buying. With some caveats, insiders purchase a stock because they think the stock is going up. There are other factors to consider such as size of the transaction relative to their compensation and net worth. Sometimes, insiders might be propping a stock price up for future financing. Sometimes, the amount of insider buying are misread or misreported. Each month, DailyStocks releases a a summary of the stocks with insider buying. Sign up for the free monthly newsletter at . About is the place where you can find stories about stocks with insider buying, where you can educate yourself about stock market investing, and where you can perform the stock search engine analysis – you enter a stock symbol, and you get a resulting page of stock ticker indexed links so that you do not have to type the stock symbol each time.