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Top Analysts To Watch Ahead Of Facebook Earnings

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Ahead of Facebook Inc (NASDAQ: FB)'s Q1:16 earnings, several top ranked TipRanks analysts weighed in on the stock, providing their individual expectations in terms of revenue, earnings, monthly average users (MAUs), and catalysts going forward. Let’s take a closer look.

The best analyst who recently rated Facebook is Gene Munster of Piper Jaffray. According to TipRanks, the 5-star analyst is ranked #4 out of 3,906 analysts. He has a 64% success rate with a 19% average one-year return per rating.

For Q1, the analyst predicts revenues of $5.1 billion for the quarter, earnings of $0.60, and total monthly active users (MAUs) of 1.63 billion. On April 12, the analyst commented on the popularity of the platform, the company’s increasing shift to mobile, and new opportunities. He stated, “The takeaway is that social network preference, particularly among teens, is fleeing. It can be argued that the evolution to mobile from desktop helped networks like Twitter, Instagram, and Snapchat, all inherently mobile, to gain in prominence even as the majority of Facebook’s use is mobile. He continued, “The next great platform, likely VR, should give at least an opportunity for another social platform to emerge, but our current leaders may stay longer than those of the past four years.”

The analyst currently has a Buy rating on the company with a $170 price target.

Mark Mahaney of RBC Capital also weighed in on Facebook prior to earnings. According to TipRanks, the 5-star analyst is ranked #8 out 3,906 analysts. He has a 63% success rate recommending stocks with an 18.4% average one-year return per rating.

Ahead of Q1 earnings, Mahaney provided his estimates for Q1 revenues, EPS, and total MAUs of $5.43 billion, $0.68, and 1.63 billion, respectively. He stated, “Given the magnitude of the Q4 beat, however, we would expect the market to look for robust upside in Q1… this will be a HIGH BAR Quarter for FB.” He continued, “Facebook has, so far, effectively addressed one of the most significant overhangs from its IPO days: the lack of Mobile monetization.”

The analyst currently has a Buy rating on the stock with a $160 price target

The third best analyst to have rated Facebook prior to earnings is Youssef Squali of Cantor Fitzgerald. According to TipRanks, the 5-star analyst is ranked #13 out of 3,906 analysts. He has a 64% success rate recommending stocks with an average return of 14.8% per recommendation.

The analyst predicts $5.165 billion in revenues and earnings of $0.54 per share for upcoming earnings. On April 25, Squali provided bullish commentary particularly on the company’s ad sales. He states, “As social media spend continues to take share of integrated ad budgets, as more of the company’s 3M marketers gain comfort with the platform, and as pricing moves higher for News Feed, carousel, auto-play video, and Instagram ads, we see 40+% growth as sustainable into FY:17.” He’s also positive on the company’s “position as the largest/most engaging mass-reach Internet platform for advertisers, unmatched targeting potential, and very potent monetization formats.”

The analyst currently has a Buy rating on the stock with a $140 price target

Justin Post of Merrill Lynch marks the fourth best-rated analyst to have weighed in on Facebook prior to earnings. According to TipRanks, the 5 star analyst is ranked #35 out of 3, 906 analysts. He has a 67% success rate recommending stocks with an average return of 18.7% per recommendation.

For Q1, the analyst projects revenues, EPS, and total MAUs of $5.44 billion, $0.68, and 1.636 billion, respectively. On April 25, the analyst commented on Facebook’s overall positioning and growth potential. He stated, “FB is an investment in increasing social and mobile Internet usage, and also offers exposure to growing Internet usage in emerging markets. Driven by user growth, new product offerings, and new ad formats, we expect FB to gain share in advertising markets and grow 30%+ over the next three years.”

The analyst currently has a Buy rating on the company with a $140 price target.

The fifth best analyst who has rated Facebook prior to earnings is Raymond James’ Aaron Kessler. According to TipRanks, Kessler is a 5-star analyst who is ranked #77 out of 3,609 total analysts. He has a 59% success rate recommending stocks with an average return of 17% per recommendation.

Kessler provided his Q1 earnings predictions for the company of $5.38 billion in revenue and earnings of $0.67 per share. On April 20, the analyst shared a positive view on the company’s “ad momentum...continued share gains, and traction on newer initiatives (i.e., Instagram monetization)."

The analyst currently has a Buy rating on the company with a $137 price target.

Latest Ratings for FB

DateFirmActionFromTo
Jan 2017Raymond JamesUpgradesOutperformStrong Buy
Jan 2017Aegis CapitalInitiates Coverage OnBuy
Nov 2016Wells FargoMaintainsOutperform

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