Facebook stock soars 6% after-hours on a strong beat
July 31, 2020
Facebook stock news
“Shares in social media giant Facebook (FB) soared 6.5% in Thursday’s after-hours trading after the company reported better-than-hoped earning results for the second quarter.
Specifically, Q2 GAAP EPS of $1.80 beat Street estimates by $0.40 while revenue of $18.69B also topped Street expectations by $1.33B, and was up 10.7% from the same period last year. Ad revenue was also up 10% at $18.32B (vs. consensus of $16.95B)- and Facebook expects a similar strong rate of growth for the third quarter.
Meanwhile daily active users (DAU) surged to 1.79B vs. the consensus of 1.75B- and similarly monthly active users (MAU) of 2.70B easily beat the consensus of 2.63B. That’s with average revenue per user (ARPU) at $7.05, again higher than the expected forecast of $6.63.
Also of note, operating income spiked 29% to $5.96B (31.9% margin), with net income almost doubling to $5.18B thanks to a significantly lower effective tax rate.
Looking forward, FB trimmed its 2020 Opex outlook by $1B at the high end to $52–55B but said its 2020 Capex would be around $16B ($14–16B prior).”
Stock market data: https://finance.yahoo.com/news/facebook-soars-6-hours-strong-053617978.html
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