Facebook Beats Estimates; Shares Rise

Updated

Facebook (NAS: FB) announced 3Q results this evening that, despite showing a net loss, were slightly higher than anticipated. This sent the stock modestly higher in after-hours trading. According to the firm's official press release, its revenues totaled $1.26 billion and its net loss was $59 million ($0.02 per share) for the quarter. Those figures for 3Q 2011 were $954 million and $227 million, respectively.

The company would have posted a profit had it not been for stock-based compensation and other significant items included in GAAP calculations. Otherwise, net profit would have totaled $0.12 per share. In a survey conducted by Thomson Reuters, analysts had been expecting $0.11 per share for the quarter.

The market seemed to be encouraged by the higher-than-expected revenue growth, since the average estimate from the Thomson Reuters survey was $1.23 billion. There was also a notable increase in the site's monthly and daily active users. These critical metrics rose 26% year-over-year (to 1.01 billion) and 28% (584 million), respectively. Even stronger growth was recorded in the number of mobile monthly active users, which climbed 61% to 604 million.


Facebook stock has lost a great deal of value since its IPO this past May. In after-hours trading following the unveiling of the 3Q results, the shares were up $0.18 to $19.50.

There are things every investor needs to know about this company. We've outlined them in our newest premium research report. There is a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about them today, and we'll tell you whether we think the stock deserves a place in your portfolio. Access your report by clicking here.

The article Facebook Beats Estimates; Shares Rise originally appeared on Fool.com.

Eric Volkman owns shares of Facebook. The Motley Fool owns shares of Facebook and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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