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Facebook (FB) Gets Ready to Rumble with FQ4 Results; Wedbush Weighs In


On July 25, social media giant Facebook (NASDAQ:FB) is set to report its second-quarter earnings results and issue financial guidance for the third quarter of the year along with any potential updates to its full-year financial guidance.

Wedbush analyst Michael Pachter‘s estimates are for revenue of $13.59 billion and EPS of $1.73, compared to consensus estimates of $13.38 billion and $1.72. Pachter anticipates global sequential MAU growth in Q2 of approximately 64 million, down from growth in Q1 of 67 million, tempered by GDPR implementation in May. The analyst has modeled global sequential DAU growth of 46 million.

Pachter noted, “Despite the ongoing heightened focus on Facebook’s privacy and content moderation policies from the media and regulators, we have observed average global daily time spent as tracking roughly flat between the end of March and end of June, citing Alexa Top Sites’ global tracker. We anticipate that ad pricing growth will again drive results this quarter, following double-digit year-over-year percent increases in each of the past five quarters.”

“The company’s unmatched scale and ease of use when it comes to its advertising platform suggest that Facebook will continue to represent a core part of digital advertiser budgets. User growth and engagement on Instagram meanwhile continue to impress, as evidenced by its June 20 announcement of reaching one billion MAUs, up from 800 million in late September,” the analyst continued.

Net net, Pachter reiterates an Outperform rating on Facebook shares, with a price target of $275, which implies an upside of 31% from current levels. (To watch Pachter’s track record, click here)