Facebook Inc (NASDAQ:FB)
This analysis focuses on the quarterly results (in term of Revenues, Gross profit, Operating income and Net income) just announced by the company and how these are better/worse than the results of the same quarter of 12 months before (called Year-over-Year analysis). Furthermore, this analysis also takes into consideration if the results in term of Revenue and EPS (earnings per share) have been better than analysts' expectations.
These data are processed to give a score (from -100% to + 100%) to the company's quarterly results.
RESULTS
The company reported revenues of $16914,0 million, up 30,4% on the same quarter of 12 months before and better than analysts' forecasts.
Gross profit of the company is $14118,0 million, up 24,3% on the same quarter of 12 months before, while gross margin decreased from 87,58% to 83,47% this quarter.
Operating profit of the company is $7820,0 million, up 6,4% on the same quarter of 12 months before, while operating margin decreased from 56,68% to 46,23% this quarter.
Net profit of the company is $6882,0 million, up 61,2% on the same quarter of 12 months before, while net margin increased from 32,90% to 40,69% this quarter. Earnings per share (EPS) are higher than analysts' forecasts.
Finally, the overall score for the quarter is 50,0%.
9 Key data used for analysis
The first 4 key data concern the evolution of revenues, gross profit, operating income and net income. The score assigned for each of these items is as follows:
1 point if the item reports a growth rate up to +20% compared to the same quarter of 12 months before and -1 point if the growth rate has dropped to a maximum of -20%.
2 points if the item reports a growth rate between +20% and +40% compared to the same quarter of 12 months before and -2 points if the growth rate fell between -20% and -40%.
3 points if the item reports a growth rate higher than +40% compared to the same quarter of 12 months before and -3 points if the growth rate has fallen more than -40%.
Other 3 key data concern the evolution of gross margin, operating margin and net margin. The score assigned for each of these items is as follows:
2 points if the margin has increased compared to the same quarter of 12 months before and -2 points if the margin is decreasing.
The last 2 items that are analyzed concern the company's ability to report Revenues and EPS (earnings per share) higher than analysts' expectations. The score assigned for each of these items is as follows:
3 points if the company reported Revenues/EPS higher than analysts' expectations and -3 points if analysts' expectations have been disappointed.
Total score goes from -100% (in case the company had reported a growth rate that fell more than -40% in terms of revenues, gross profit, operating profit and net profit and analysts' expectations have been disappointed) to +100% (in the case in which the company reported a growth rate higher than +40% in terms of revenues, gross profit, operating profit and net profit and analysts' expectations have been overcome) passing by 0% (situation in which the company had reported the mixed results).
Analysis updated to the most recent quarterly report available (12/2018).
Data in millions of Dollars.
Analysts' expectations from Refinitiv.
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.