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Facebook (FB) to Report Q2 Earnings: What's in the Cards?

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Facebook (FB - Free Report) is set to report second-quarter 2021 results on Jul 28.

For the quarter, Facebook expects year-over-year revenue growth to remain stable or modestly accelerate compared with the growth rate in the first quarter of 2021.

The Zacks Consensus Estimate for revenues is pegged at $27.89 billion, indicating an increase of 49.3% from the year-ago quarter’s reported figure.

The consensus mark for second-quarter earnings is pegged at $3.04 per share, having been revised 0.3% upward in the past 30 days, indicating 69% growth from the figure reported in the year-ago quarter.

Facebook's earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 31.07%.
 

Facebook, Inc. Price and EPS Surprise

Facebook, Inc. Price and EPS Surprise

Facebook, Inc. price-eps-surprise | Facebook, Inc. Quote

 

Let’s see how things are shaping up for the upcoming announcement.

Factors to Consider for Q2 Earnings

Usage of Facebook’s services, including Messenger, Instagram and WhatsApp, is expected to have remained strong amid coronavirus-induced lockdowns and shelter-in-home guidelines. This is expected to have driven top-line growth in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter MAUs worldwide is pegged at 2.908 billion, suggesting 7.7% growth from the figure reported in the year-ago quarter. DAUs worldwide is pegged at 1.918 billion, indicating 7.5% growth from the figure reported in the year-ago quarter.

An improved ad-spending environment, as well as accelerated digital shift, is expected to have driven Facebook’s ad revenues in the to-be-reported quarter. The company’s top line is likely to have gained from improving market share, driven by a growing user base and continuing innovation in ad product.

However, changes made by Apple (AAPL - Free Report) and Alphabet’s (GOOGL - Free Report) Google in their mobile operating systems and browser platforms have limited Facebook’s ability to track user-activity trend. Intensifying competition from Google, Snap (SNAP - Free Report) and Twitter for ad-dollars remains a headwind.

These factors are expected to have affected year-over-year advertising revenue growth rate in second-quarter 2021.

The consensus mark for this Zacks Rank #3 (Hold) company’s second-quarter advertising revenues is pegged at $27.17 billion, indicating 48.3% growth from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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