Facebook (FB) will report first quarter results this afternoon (16:05).

Analyst expect Q1 EPS down 4% to $1.62 with revenue up 25% to $14.97 bln.

Facebook said first quarter revenue growth would decelerate mid-single digits from 30% growth in the fourth quarter. 

The company also said revenue growth would decelerate throughout 2019.

Facebook has guided for 40-50% expense growth and $18-20 bln in cap-ex. The company continues to deal with improving safety and security on its platforms.


FB has a $522 market cap. It stock trades at 24x EPS and 13x EV/EBITDA, which is roughly on par with Google (GOOG/L) and cheaper than Twitter (TWTR) and other social media/advertising peers.

The weekly options are pricing in a ~6% move by Friday.


Facebook beats by $0.28 ex-estimated $3 bln legal accrual, reports revs in-line  (182.58 -1.20)

  • Reports Q1 (Mar) earnings of $1.89 per share, excluding $1.04/share ($3 bln) estimated legal expense from FTC, $0.28 better than the S&P Capital IQ Consensus of $1.61; revenues rose 26.0% year/year to $15.08 bln vs the $14.97 bln S&P Capital IQ Consensus. Daily active users (DAUs) -- DAUs were 1.56 billion on average for March 2019, an increase of 8% year-over-year. Monthly active users (MAUs) -- MAUs were 2.38 billion as of March 31, 2019, an increase of 8% year-over-year. 

  • "In addition, we estimate that more than 2.1 billion people now use Facebook, Instagram, WhatsApp, or Messenger (our "Family" of services) every day on average, and around 2.7 billion people use at least one of our Family of services each month."

  • In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices, which accrual is included in accrued expenses and other current liabilities on our condensed consolidated balance sheet. We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion. The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome. 

  • "We had a good quarter and our business and community continue to grow," said Mark Zuckerberg, Facebook founder and CEO. "We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet."



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