Goldman On Facebook: Meet The New Boss, Same As The Old Boss

Goldman Sachs’ Heather Bellini mentioned that Facebook Inc FB reported robust 1Q results, on the back of “mixed data points and investor concerns on the health of ad spend going into the print.”

Bellini maintains a Buy rating on the company, while raising the price target from $130 to $146.

Strong Quarter

Facebook reports its total revenue for 1Q at $5.38 billion, ahead of the consensus of $5.26 billion, with ad revenue of $5.20 billion, above the consensus of $5.02 billion.

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Non-GAAP operating margins also beat expectations at 55.3 percent, while the non-GAAP EPS at $0.77 was also ahead of the consensus, representing “the highest upside FB has seen since 2Q14, but was helped by an 8 cent below the line tailwind vs. our forecast,” Bellini stated.

The analyst believes that “the ramp of both Instagram and video continue to be incremental drivers of topline growth and see this continuing through the year.”

Estimates Raised

The CY16 revenue estimate was raised from $25.2 billion to $26.2 billion, driven by the strength of the company’s revenue and trajectory.

The CY16 non-GAAP EPS estimate was raised from $3.05 to $3.63 to reflect lower taxes, the increased revenue estimate and Facebook having maintained its expense guidance.