Facebook (NASDAQ:FB) to Announce its Third Quarter Results on Tuesday – Analysts have High Expectations

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By Thomas Copeland on October 27, 2014 Social Media

Facebook (NASDAQ:FB) is all set to report its earnings results for this year’s third quarter on Tuesday. Both bottom and top lines are expected to show growth in double digits.

Past couple of weeks have been about third and fourth quarter results from different companies; Facebook (NASDAQ:FB) is yet another big shot name that is ready to reveal its results after the market closes on Tuesday tomorrow. The report is expected to show some seriously impressive figures as the social networking giant’s growth has been unprecedented.

Different analysts’ estimates suggest that Facebook (NASDAQ:FB) should report $3.1 billion revenue for its third quarter; this would be a 55% jump from as compared to last year’s third quarter revenue.

Earnings per Share estimates by Wall Street are 40 cents minus items, which will be a 60% increase on a year-over-year basis.

Facebook (NASDAQ:FB) had a good run at the stock market after it announced its results for the second quarter back in July this year, which exceeded estimates and boosted the company’s stock value. Second quarter’s ad revenue went up to $2.68 billion – up by 67% as compared to last year; 62% of this total ad revenue came from mobile advertisement.

Today on Monday Facebook (NASDAQ:FB)’s stock had a little setback at the stock market when it was trading at $80.55. However this is likely to change after the company announces its results tomorrow.

Facebook (NASDAQ:FB) has received some positive forecast from RBC Capital Markets’ analyst, Mark Mahaney, who has chosen Facebook (NASDAQ:FB) as his top pick for large-cap sector (Internet)’s long-term recommendations.

Mahaney wrote in a statement that Facebook (NASDAQ:FB) keeps on showing impressive growth in terms of its users; and this growth is very rapid on a very large scale. He further said that mobile phones have become the latest trend and Facebook (NASDAQ:FB) has been smart enough to establish a strong foothold in this market through its mobile advertisements. Mahaney gave Facebook (NASDAQ:FB) a rating of $92 price target.

Facebook (NASDAQ:FB) no doubt has big plans for its future; it is taking steps to cover all areas of communication and mobile industry; only last month it went through with its WhatsApp acquisition, which is a deal worth $21.9 billion. WhatsApp currently has a user base of 600 million from all over the world; it is the world’s largest messaging service on mobile.

Cowen & Co., analyst John Blackledge expects Facebook (NASDAQ:FB) to report a figure of 1.36 billion for its active users on a monthly basis for its third quarter, this will be an improvement by 13% for last year’s third quarter. Blackledge has set a $90 price target and a rating of Outperform for Facebook (NASDAQ:FB).

Youssef Squali an analyst at Cantor Fitzgerald has also given positive feedback on Facebook (NASDAQ:FB). He said that since the company has extremely strong monetization formats and is the biggest platform for advertisers so it remains his top pick. Due to its large user base Facebook (NASDAQ:FB) offers advertisers a great platform for targeting their audience. He believes that with video ads the company will do even better. Video ads became a permanent feature on Facebook (NASDAQ:FB) last year. Squali has set a $82 price target and Buy rating for the company.