Facebook Earnings Date – January 27, 2019
Analysts had forecast $3.16 EPS for Facebook’s Q4 earnings, but the company beat expectations with $3.88 EPS. The company saw higher monthly active users in Q4 and increased revenue from ad sales. However, the social network is forecasting significant ad targeting headwinds in 2021, partly due to a changing regulatory landscape and platform changes. As a result, investors are avoiding FB for the time being.
The company’s quarterly EPS performance has been inconsistent in recent years. Its first two quarters in FY 2019 saw sharp declines. Its Q1 and Q2 of FY 2020 saw the strongest EPS growth. The company now expects Q4 FY 2020 EPS growth of 23.3%, which is a large acceleration from the 7.3% growth in Q4 FY 2019. This strong performance could help Facebook prepare for headwinds in ad targeting in 2021.
While Facebook’s ad revenue and EPS will likely remain stable, the company is preparing for a new business model. The company will separate out its “Facebook Reality Labs” business in the fourth quarter. This division will focus on hardware, augmented reality and virtual reality. The company will focus its other revenue streams on the family of apps and the platform. However, Facebook’s recent investment in hardware will significantly reduce its operating profit by $10 billion by 2021.
Facebook’s Q4 FY 2020 earnings will be reported on January 27, and analysts are forecasting a big rise in EPS and revenue. The company plans to invest $10 billion in research and development in its platform and believes that this will help address ad targeting challenges. They have also promised to make more in-app conversions. The future looks brighter for the social network, but there’s no guarantee of this.
Facebook’s Q4 FY 2020 earnings are expected to show a significant revenue growth, but analysts are cautious. The company’s quarterly revenue will likely be between $31.5 billion and $34 billion. The social network’s ad revenue outlook is critical for investors because it is the only way to measure how successful its ad-targeting efforts are. The next quarter’s numbers will also be the basis for its future strategy.
Facebook’s quarterly earnings will be a big one for investors. The company’s CEO and executives will likely focus on the company’s investments in research and development and will be expected to show a sharp rise in EPS. The company has made a significant investment in R&D and has recently hired a record number of people in the U.S. and Europe. The company’s CEO is expected to be “extremely optimistic” on its Q4 results.
The company is preparing to unveil its Q4 FY 2021 earnings. During the Q3 earnings call, the CEO is expected to highlight its investments in augmented and virtual reality. In addition to the news, the executives are also expected to highlight Facebook’s massive investments in research and development. While Facebook is making big changes in its business, it continues to attract users from every walk of life. This growth has been the foundation for the company’s success over the past several years.
As a result of the iOS-related headwinds, Facebook’s revenue was lower than expected. The company’s MAU base continued to grow, reaching 2.8 billion users. Its strong results will position the company for continued growth in 2021 despite the headwinds from the ad targeting market. It is important to note that Zuckerberg’s comments are not necessarily representative of Facebook’s views.
As a social network, Facebook’s Q4 earnings will be closely watched. While the company’s revenue is expected to be higher than last year, the company is still expected to post a loss of up to $6 billion in Q4. While the company is still in a strong position, it has been a risky time to invest in the stock, despite its increasing share price. As the social network continues to grow, so will its cash flow.
Facebook’s quarterly revenue has been rising steadily in recent years. It has grown by at least 30 percent year-over-year. But its growth has slowed over the last two years. Its revenue growth for Q2 FY 2020 was just 10.7%. But analysts are predicting a 22.7% increase for Q4 FY2020. So, investors are waiting for the company’s Q4 earnings to see how much it’s worth.
