Facebook (FB) will report second quarter results after the bell and host a call at 16:00 -- the stock is trading at a new all-time high ahead the report.
Last quarter, blow out first quarter results overshadowed data privacy concerns that were in the forefront following the Cambridge Analytica scandal.
Revenue growth accelerated to 49%, coming in 5% above estimates.
What's more, fears of lower engagement were put to rest after daily active users (DAU) in the US grew 1M Q/Q to 185M after falling 1M from that level in Q4.
The Street is looking for Q2 EPS of $1.70 (vs. $1.32 last year) with revenue up 43% to $13.35 bln.
Facebook has beat on the top and bottom line twelve quarters in a row while blowing away revenue estimates three quarters in a row.
The Street expects earnings to grow 24% to $7.66/share this year with revenue up 40% to $56.9 billion.
Facebook is up over 40% from the March lows when fears over regulation and reduced engagement reached a fever pitch.
The company has a ~$630 billion valuation and trades at 28x EPS estimates or 23x FY19 EPS, which appears cheap given the growth and margin profile.
This stock is up a lot and investors will continue to point to the 44% increase since April. The push back is that this company can pull levers whenever they want and show signs of profitability and rev/user growth.
- Reports Q2 (Jun) earnings of $1.74 per share, $0.04 better than the Capital IQ Consensus of $1.70; revenues rose 41.9% year/year to $13.23 bln vs the $13.35 bln Capital IQ Consensus.
- Costs +50% to $7.37 bln.
- Daily active users (DAUs) -- DAUs were 1.47 billion on average for June 2018, an increase of 11% year-over-year.
- Monthly active users (MAUs) -- MAUs were 2.23 billion as of June 30, 2018, an increase of 11% year-over-year.
- "Our community and business continue to grow quickly," said Mark Zuckerberg, Facebook founder and CEO. "We are committed to investing to keep people safe and secure, and to keep building meaningful new ways to help people connect."