Facebook to Announce Second-Quarter Results
(NEW YORK) — Facebook (Nasdaq: FB), after its disastrous initial share offer in May, will issue its first earnings report today when the markets close. Investor attention will focus on how much the social network made in advertising revenue and whether users are sticking despite cutthroat competition for online engagement.
Chief Executive Officer Mark Zuckerberg will hold an earnings conference call at 5 P.M. ET, which will be available via live webcast on Facebook’s investor relations page. The Harvard dropout’s net worth sunk about $5 billion from a peak of about $19 billion after Facebook went public.
Before the highly publicized and blundered IPO on May 18, Facebook revealed it made $1.058 billion in revenue for the first quarter of 2012, up from $731 billion last year. Its net income had dropped to $205 million from $233 million last year.
The company’s shares traded today at $27, some 26 percent below its offer price back in May.
At the end of March 2012, there were 901 million monthly active Facebook users with 526 million daily active users on average.
Aaron Kessler, an analyst with investment firm Raymond James, estimates second-quarter revenue of $1.11 billion, slightly below consensus of $1.16 billion. Kessler estimates about 561 million daily active users in the second quarter, which would indicate growth of 35 percent year-over-year.
Overall, analysts expect revenue to expand 9 percent to $1.15 billion and earnings per share to be 12 cents.
Copyright 2012 ABC News Radio