fbFacebook, Inc. (NASDAQ:FB) reported financial results for the quarter ended September 30, 2015.

“We had a good quarter and got a lot done,” said Mark Zuckerberg, Facebook founder and CEO. “We’re focused on innovating and investing for the long term to serve our community and connect the entire world.”

Third Quarter 2015 Financial Summary            

Three Months Ended September 30,

Nine Months Ended September 30,

In millions, except percentages and per share amounts

2015

2014

2015

2014

Revenue

$ 4,501

$ 3,203

$ 12,087

$ 8,615

Income from Operations

   GAAP

$ 1,459

$ 1,397

$   3,665

$ 3,861

   Non-GAAP*

$ 2,410

$ 1,820

$   6,478

$ 4,987

Operating Margin

   GAAP

32%

44%

30%

45%

   Non-GAAP*

54%

57%

54%

58%

Net Income

   GAAP

$    896

$    806

$   2,127

$ 2,239

   Non-GAAP*

$ 1,628

$ 1,149

$   4,253

$ 3,194

Diluted Earnings per Share (EPS)

   GAAP

$   0.31

$   0.30

$     0.75

$   0.86

   Non-GAAP*

$   0.57

$   0.43

$     1.50

$   1.22

* Non-GAAP financial measures exclude amortization of intangible assets, share-based compensation and related payroll tax expenses. Non-GAAP net income and EPS also exclude the income tax effects of these non-GAAP adjustments. See the table below titled “Reconciliation of Non-GAAP Results to Nearest GAAP Measures.”

Third Quarter 2015 Operational Highlights

  • Daily active users (DAUs) – DAUs were 1.01 billion on average for September 2015, an increase of 17% year-over-year.
  • Mobile DAUs – Mobile DAUs were 894 million on average for September 2015, an increase of 27% year-over-year.
  • Monthly active users (MAUs) – MAUs were 1.55 billion as of September 30, 2015, an increase of 14% year-over-year.
  • Mobile MAUs – Mobile MAUs were 1.39 billion as of September 30, 2015, an increase of 23% year-over-year.

Third Quarter 2015 Financial Highlights

GAAP

Year-over-
Year %
Change

Three Months Ended September 30,

In millions, except percentages and per share amounts

2015

2014

Revenue:

   Advertising(1)

$ 4,299

$ 2,957

45%

   Payments and other fees

202

246

(18)%

Total revenue(2)

4,501

3,203

41%

Total costs and expenses

3,042

1,806

68%

Income from operations

$ 1,459

$ 1,397

4%

Operating margin

32%

44%

Provision for income taxes

536

Effective tax rate

37%

Net income

$    896

$    806

11%

Diluted EPS

$   0.31

$   0.30

3%

(1)   Excluding the impact of year-over-year changes in foreign exchange rates, advertising revenue would have increased by 57%.

(2)   Excluding the impact of year-over-year changes in foreign exchange rates, total revenue would have increased by 51%.

NON-GAAP

Year-over-
Year %
Change

Three Months Ended September 30,

In millions, except percentages and per share amounts

2015

2014

GAAP revenue

$ 4,501

$ 3,203

41%

Total costs and expenses

2,091

1,383

51%

Income from operations

$ 2,410

$ 1,820

32%

Operating margin

54%

57%

Effective tax rate

32%

Net income

$ 1,628

$ 1,149

42%

Diluted EPS

$   0.57

$   0.43

33%

Third Quarter 2015 Other Financial Highlights

  • Mobile advertising revenue – Mobile advertising revenue represented approximately 78% of advertising revenue for the third quarter of 2015, up from 66% of advertising revenue in the third quarter of 2014.
  • Capital expenditures – Capital expenditures for the third quarter of 2015 were $780 million.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $15.83 billion at the end of the third quarter of 2015.
  • Free cash flow – Free cash flow for the third quarter of 2015 was $1.41 billion. (Original Source)

Shares of Facebook are up 2.87% to $106.92 in after-hours trading. FB has a 1-year high of $105.12 and a 1-year low of $72. The stock’s 50-day moving average is $95.92 and its 200-day moving average is $89.02.

On the ratings front, Facebook has been the subject of a number of recent research reports. In a report released yesterday, Raymond James analyst Aaron Kessler maintained a Buy rating on FB, with a price target of $115, which represents a potential upside of 11.4% from where the stock is currently trading. Separately, on November 2, Cantor Fitzgerald’s Youssef Squali maintained a Buy rating on the stock and has a price target of $105.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Aaron Kessler and Youssef Squali have a total average return of 19.6% and 18.8% respectively. Kessler has a success rate of 61.7% and is ranked #78 out of 3824 analysts, while Squali has a success rate of 63.8% and is ranked #9.

Overall, 21 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $117.39 which is 13.8% above where the stock opened today.