Ivan Feinseth Shares 'Key Metrics To Watch' At Facebook's Earnings

• Ivan Feinseth, CIO and partner of Tigress Financial Partners appeared on CNBC on Wednesday morning
• The investor shared a preview of Facebook Inc FB’s earnings.
• Below are some key metrics investors should be watching at Wednesday afternoon’s earnings call.

Facebook will report its third quarter financial results after the market closes on Wednesday, and the Street is expecting to see a year-over-year increase in earnings of more than 20 percent. Ahead of the earnings call, Ivan Feinseth, CIO and partner of Tigress Financial Partners appeared on CNBC and shared a preview of the results, pointing out a few key metrics investors should pay attention to.

The first thing Feinseth would like to see, he assured, is a surge in revenue -especially advertising driven revenue- and, even more importantly, a rise in user engagement, particularly in “mobile-based user engagement.” In fact, the investor said that he would expect figures in line with analysts’ consensus, which calls for a total 1.53 billion monthly active users, with 1.36 billion of them accessing the site from mobile devices. “You wanna keep seeing stair-step increases over each quarter,” he added.

The expert continued to state he would also want to see that “some of the investments that they’ve made, and some of the acquisitions like Instagram, to continue to pay off.”

Feinseth then looked into acquisitions, assuring that almost each acquisition Facebook has made has turned out to be a “brilliant” one. “Also, they continue to generate a lot of cash,” he added. “I don’t think they are ready to return cash to shareholders; I think they have to keep reinvesting in their business.”

Figures To Focus On

The CIO explained that Tigress Financial Partners does not focus on “specific measurements -because we don’t even look at earnings per share at our firm. We focus on economic profit, so we wanna see a continual rise in return on capital,” he expounded. “So, as long as each incremental investment over time, returns a greater return (…) that will drive the share price higher.”

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.