Another day, another big earnings report. This time, Facebook Inc. (FB) is grabbing headlines after announcing the seventh consecutive quarter of beating analysts’ earnings expectations.
Notably, Facebook’s advertising revenue rose 53%, and the closely-watched mobile ad revenue number surged 69% last quarter. Facebook also had 1.39 billion monthly active users, a 13% increase over last year. Daily users jumped 18% year-on-year to 890 million while mobile users increased 26% to 1.19 billion.
For the fourth quarter, Facebook’s company-wide revenue increased 49% year-on-year to $3.85 billion. Analysts were looking for $3.77 billion in revenue so Facebook posted a modest sales surprise.
Over the same period, net income jumped 34% to $701 million, or $0.25 per share. Excluding special items, adjusted earnings per share was $0.54, which blew the $0.48 consensus estimate out of the water. Facebook is no stranger to double-digit earnings surprises, so this didn’t come as a huge surprise.
All-in-all, this was a strong fourth-quarter report, and I consider FB a B-rated Buy.