Facebook Earnings: Here’s What To Expect From The Social Media Juggernaut

Facebook, the world’s largest social media company, is slated to post second-quarter earnings Wednesday after the market’s closing bell, and as with other big-tech companies reporting this month, analysts expect record-breaking sales buoyed by a resurgent advertising market.

On average, analysts expect Menlo Park, Calif.-based Facebook to report record second-quarter revenue of $27.8 billion, according to Bloomberg data, up 49% from the same period last year. Net income is expected to hit $3.02 per share, or roughly $8.5 billion, 68% more than the $1.80 posted one year ago.

In a Monday note, Bank of America analysts said they expect Facebook added about 36 million monthly active users last quarter, which would mean a record 2.9 billion users for the social network’s suite of offerings—including Instagram and its Messenger service.

A slew of analysts reiterated bullish Facebook stock ratings over the past week in anticipation of a better-than-expected earnings report, with Credit Suisse’s Stephen Ju saying improving trends in advertising (where Facebook derives the majority of its revenue) should bode well for the company’s bottom line.

As of 12 p.m. ET, Facebook shares were up 1.2% to $373, lifting the stock’s year-to-date gain to about 38%—more than double the tech-heavy Nasdaq’s 16% increase. Last week, smaller social media rivals Snap and Twitter stunned Wall Street with earnings that blew past expectations, posting revenue growth of 116% and 74%, respectively.

Both sets of results point to a stronger-than-expected advertising recovery for online media, which could ultimately weigh on Facebook stock after earnings if the company doesn’t live up to its peers, Bank of America notes.