Facebook (FB) is set to report Q4 results after the bell with a conference call slated for 5:00pm ET. 

Capital IQ Consensus estimates Q4 adj. EPS of $1.97 (vs. $1.41 in 4Q16), w/revs of $12.55 bln (+42.4% y/y). 

Investors are expecting another strong quarter from the largest social media company in the world. Facebook hasn't missed on the top line since 1Q15. 

Q3 Recap

  • Reports Q3 (Sep) earnings of $1.59 per share, $0.31 better than the Capital IQ Consensus of $1.28; revenues rose 47.3% year/year to $10.33 bln vs the $9.84 bln Capital IQ Consensus. Ad rev +49% to $10.1 bln. Mobile advertising revenue -- Mobile advertising revenue represented ~88% of advertising revenue for the third quarter of 2017, up from ~84% of advertising revenue in the third quarter of 2016. 
  • Daily active users (DAUs) -- DAUs were 1.37 billion on average for September 2017, an increase of 16% year-over-year. Monthly active users (MAUs) -- MAUs were 2.07 billion as of September 30, 2017, an increase of 16% year-over-year. 
  • Cash and cash equivalents and marketable securities -- Cash and cash equivalents and marketable securities were $38.29 billion at the end of the third quarter of 2017. 


  • Deutsche Bank raised tgt to $225 from $220 (January 29). 
  • Credit Suisse raised tgt to $232 from $230 (January 8).

Options Activity

Based on FB options, the current implied volatility stands at ~ 35%, which is 52% higher than historical volatility (over the past 30 days).



Technically, FB remains among one of the leading technology/internet names in the market as it sits just under all-time/Jan highs along the $190-level. In response to earnings, it's "blue skies above" this $190-level, which will put the $200-mark in its sights.

If sellers take hold after earnings, then monitor the 50-day ma's back around the $181-area, followed by the January low/late-Dec low at $175/174. Below that, the 200-day ma's come in play near $167.