The projection for negative annual earnings growth for 2019 reflects the negative YOY EPS growth in the first two quarters of the year, which are at least partly due to higher expenses from increased investment in security measures. Second quarter EPS of $0.91 also reflected a one-time charge of $2 billion related to Facebook’s settlement with the Federal Trade Commission (FTC) and $1.1 billion in income tax expense. Without those expenses, Q2 EPS would have been $1.99, a 6.13% positive surprise above analyst estimates. Revenue is still growing but has trended downwards over the past several quarters to its slowest pace since the company went public.
Saturday, December 21, 2019
Analysts expect Facebook to report earnings
Analysts expect Facebook to report earnings of $1.90 per share, implying year-over-year (YOY) growth of 8.1%. The earnings growth will be driven by estimated Q3 revenue of $17.3 billion, 26.3% higher than the year ago period. For the entire 2019 fiscal year, Facebook is on track to post earnings per share (EPS) of $6.26 on revenue of $70.2 billion, according to analyst estimates. That would mean an annual EPS decline of 19.07%, the first year of negative EPS growth since 2012, the year of Facebook’s initial public offering (IPO).
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