Facebook Blows Analyst Expectations Away With Strong Results
Facebook Inc (NASDAQ: FB) opened 8% higher Thursday morning, reaching record highs and closing in on that $1 trillion market capitalization after its first quarter results blew away analysts’ expectations. The company announced first-quarter revenue of $26.17 billion, a 48% year-over-year growth, along with a gross margin of 80.4%. Net income came in at a first-quarter record of $9.5 billion, or 36.3%, and earnings per share hit $3.30. All these numbers beat Refinitiv’s analyst consensus estimates.
A number of analysts increased their price targets off the back of these stellar earnings, bringing their average 12-month price target up from $338.72 last month to $358.87 from a total of 55 analysts who cover the name.
Below are the most recent analyst changes as of the time writing:
- BOFA Global Research raises target price to $390 from $358
- Oppenheimer raises target price to $375 from $350
- UBS raises target price to $380 from $350
- Monness Crespi Hardt raises target price to $460 from $375
- Stifel raises target price to $400 from $350
- Raymond James raises target price to $415 from $360
- Truist Securities raises target price to $400 from $350
- Wedbush raises target price to $355 from $340
- Deutsche Bank raises target price to $425 from $385
- BMO raises target price to $420 from $375
- Mizuho raises target price to $400 from $350
- Guggenheim raises target price to $410 from $365
- Susquehanna raises target price to $425 from $375
- MKM Partners raises target price to $380 from $340
- Piper Sandler raises target price to $335 from $285
- Credit Suisse raises target price to $400 from $371
- Atlantic Equities raises target price to $370 from $345
- Cowen and Company raises target price to $400 from $360
- Evercore ISI raises target price to $400 from $370
- Jefferies raises target price to $385 from $360
- Baird raises target price to $340 from $320
In BMO’s note following the results, their analyst, Daniel Salmon, raised their 12-month price target from $375 to $420 and reiterated their outperform rating on the stock. Salmon raised Facebook to their top pick and says that the first quarter print and second-quarter guidance are helpful to “alleviate concern about core ad trends, with or without AAPL’s ATT,” but still believes that there is a small wall of worry to climb as the newly introduced IOS 14.5 is expected to have material headwinds on Facebook’s business. He tells investors that the focus should be on Facebook’s, “fundamental strength in core advertising and be supported by catalysts for multiple expansion like data points about commerce, VR/AR and crypto.”
A large beat on Facebook’s ad revenue helped propel their results this quarter, with MAU growth accelerating while DAU’s slowed slightly. Salmon writes, “2Q21 is still expected to be “stable or modestly accelerate” albeit now at higher levels of growth. Engagement trends are normalizing and 2H21 should again be driven by higher ad prices as a result.”
Below you can see BMO’s key changes to their second quarter, 2021 and 2022 results.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
