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Facebook, Inc. Beats Q1 Estimates, Shares Up +4% After Hours

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Facebook, Inc. (NASDAQ: FB) just reported its Q1 2018 earnings results that crushed expectations, and its stock has responded by rising over 3% in the after hours trading session. Here’s a breakdown of some of the key statistics from the report:

Metric Q1 2018 Q1 2017 Change
Revenue $11,966 million $8,032 million 49.0%
Income from operations $5,449 million $3,327 million 63.8%
Net income $4,988 million $3,064 million 62.8%
Diluted EPS $1.69 $1.04 62.5%

The consensus estimates called for $11.41 billion in revenue and $1.35 in EPS, so Facebook beat by a wide margin, and it went on to note that it achieved a 13% year-over-year increase in daily active users (DAUs) to 1.45 billion and a 13% year-over-year increase in monthly active users to 2.20 billion.

As mentioned before, Facebook’s stock has responded to the earnings beat by rising more than 4% in the after hours trading session, and it looks like Zuckerberg decided he had something to prove.  We will see if the gains hold. but no #deletefacebook in the results.

Keep in mind, before the afterhours pop, Facebook was trading at only 18.2x forward estimated earnings – its lowest multiple EVER.

-JP Gravitt

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