Facebook’s Q4 Earnings Beat Driven By Strong Mobile Performance

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February 1, 2017 4:29pm Nasdaq:FB

Nasdaq:FB | News, Ratings, and Charts

From StockNews.com: Facebook Inc (NASDAQ:FB) late Wednesday posted market-beating fourth quarter profit and revenue, as active users continued to rise, as did FB’s reliance on mobile ad revenue.

The Menlo Park, CA-based social media behemoth reported adjusted Q4 EPS of $1.41, which was $0.10 better than the Wall Street consensus estimate of $1.31. Revenues rose 53.1% from last year to $8.63 billion, also topping analysts’ $8.49 billion view.

Facebook noted that daily active users (DAUs) were 1.23 billion on average for December 2016. that number was up 18% from the year-ago period, and above recent estimates for 1.20 billion. Mobile daily active users (DAUs) jumped 23% to 1.15 billion on average in December.

Monthly active users (MAUs) were 1.86 billion as of December 31, 2016, up 17% from December 2015. That metric came in slightly higher than the 1.84 billion monthly users analysts were looking for. Meanwhile, Mobile MAUs gained 21% to 1.74 billion, up 21% year-over-year.

FB said that mobile advertising revenue represented about 84% of total advertising revenue in Q4, compared with 80% of advertising revenue in Q4 2015. So, the trend of Facebook relying more and more heavily on mobile ad revenue is clearly continuing.

Capital expenditures for the full year 2016 were $4.49 billion, right in line with guidance of $4.5 billion.

The company commented via press release:

“Our mission to connect the world is more important now than ever,” said Mark Zuckerberg, Facebook founder and CEO. “Our business did well in 2016, but we have a lot of work ahead to help bring people together.”

Facebook Inc shares rose $3.02 (+2.27%) to $136.25 in after-hours trading Wednesday following the report. Year-to-date, FB has gained 15.72%, versus a 1.83% rise in the benchmark S&P 500 index during the same period.

FB currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 44 stocks in the Internet category.

This article is brought to you courtesy of StockNews.com.

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