Join        Login             Stock Quote

Facebook (FB) 4Q Earnings Drop 79 Pct, Yet Tops View; Shares Off

 January 30, 2013 04:31 PM

(By Balaseshan) Facebook Inc. (NASDAQ: FB) reported a 78.8 percent drop in quarterly earnings due to higher costs and expenses as well as a higher income tax provision. Despite results exceeding the Street's expectations, its shares fell 4.32 percent in the aftermarket trade.

Earnings for the fourth quarter were $64 million or $0.03 per share, lower than last year's $302 million or $0.14 per share. Adjusted earnings per share (EPS) rose to $0.17 from $0.15.

Revenue jumped 40 percent to $1.585 billion. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 42.2 percent.

[Related -Why Investing In IPOs Is A Foolish Move]

Analysts, on average, polled by Thomson Reuters had expected EPS of $0.15 on revenue of $1.53 billion for the fourth quarter.

Revenue from advertising climbed 41 percent to $1.33 billion, while payments and other fees revenue increased 36.2 percent to $256 million.

Revenue from U.S. and Canada jumped 37.6 percent to $780 million, while Europe revenue grew 21.6 percent to $440 million. Asia revenue soared 72.2 percent to $198 million, while revenue from Rest of World climbed 92 percent to $167 million.

Monthly active users (MAUs) grew 25 percent to 1.06 billion as of December 31, 2012, while daily active users climbed 28 percent to 618 million on average for December 2012. Mobile MAUs were 680 million as of December 31, 2012, an increase of 57 percent year-over-year.

Quarterly costs and expenses were $1.06 billion, an increase of 82 percent from the fourth quarter of 2011. Excluding share-based compensation and related payroll tax expenses, adjusted costs and expenses increased 67 percent.

[Related -Facebook Inc. (FB) Q2 Earnings Preview: Scoring Big on the World Cup]

Operating margin fell to 33 percent from 48 percent, while adjusted operating margin declined to 46 percent from 55 percent.

The income tax provision for the fourth quarter was $441 million, representing a 87 percent effective tax rate, driven by share-based compensation expense, a portion of which is not tax-deductible.

FB closed Wednesday's regular session up 1.46 percent at $31.24. The stock has been trading between $17.55 and $45 over the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageSavings Glut and Financial Imbalances

Martin Wolf in today's Financial Times discusses the reasons for low interest rates and suggests some read on...

article imageA Dividend Aristocrat Is Now On Sale

The bear market investors have been dreading is already here for many individual stocks. While the S&P 500 read on...

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.