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FB Stock: Facebook Inc (FB) Stock Is A Buy Ahead Of Q4 Earnings

Facebook Earnings Estimates And Revisions

Wall street consensus is for Facebook to report EPS of $1.31 (2) cents on top line of $8.5B, implying a 65% YoY growth in earnings and 45% YoY revenue growth. The analyst consensus has risen by 8.3% over the last 90 days. The consensus earnings estimate was $1.21 at the end of October 2016. The earnings whisper number anticipates Facebook to report an EPS of $1.37, good for a 6 cent earnings surprise and a 73.4% YoY growth. As covered in the earlier paragraph, strong readings across the core metrics in addition to the increased monetization efforts at Instagram, also owned by Facebook, make an earnings beat highly probable.

Facebook Earnings History And Post-Earnings Stock Price Movement

Facebook Inc (NASDAQ:FB) has a very strong track record of trumping analyst estimates. The company has beaten analyst estimates in 16 out of the 18 earnings reports the company has released over its life as a publicly listed company. The company has delivered an earnings surprise in each of the last 4 quarters, with an average earnings surprise of 20.2%. Facebook stock has traded strongly following earnings announcements, with the stock rising by an average of 4.61% in the one trading session following the last 4 earnings reports. Hence, a beat/miss on the Q4 2016 numbers on Feb 1 could well decide the post-earnings movement of Facebook stock price.

Putting It All Together

Facebook Inc (NASDAQ:FB) is scheduled to report its Q4 2016 earnings after the market close on February 1. Wall Street analysts expect the company to report earnings of $1.31 on revenue of $8.5B, good for strong YoY growth. The current earnings whisper anticipates a 6 cent EPS beat. The likelihood of an earnings beat is also supported by Facebook’s record of consistently delivering earnings surprises and also the strong performance across core metrics during the holiday quarter, as reported by Nanigans. Facebook stock presents a solid investment opportunity supported by explosive revenue/earnings growth, the potential of Instagram and growing video ad revenue. Therefore, long-term investors should continue to accumulate Facebook stock on any dips and use any post-earnings pullback to buy Facebook shares at lower prices.

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The article FB Stock: Facebook Inc. (FB) Stock Is A Buy Ahead Of Q4 Earnings originally appeared on Watch our analysis video on FB (3). – Watch, Analyze, Invest. Why spend hours putting together numbers you can get in minutes, in one simple video? Our ‘Robo Advisor’ videos give you every number that matters, in 1 minute. Find insightful articles with ideas on investing, top stock picks that outperform the markets, personalized portfolio analysis videos and a whole lot more. – Your Friend On Wall Street.

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