Facebook Turns In Improved Earnings Report
Facebook, which had been slogging along since its May public offering with an underperforming stock price, had reason to be optimistic Oct. 23 when it reported better-than-expected third-quarter earnings.
Revenue showed adjusted earnings of 12 cents per share on revenue of $1.262 billion, up a solid 32 percent from the same period in 2011, a bit above Wall Street predictions. But despite the income upsurge, the company slipped to a loss of 2 cents per share.
Adjusted net income was $311 million, compared to Bloomberg analysts' expectations of $289.7 million.
The report indicated that the company may have found new market traction because Facebook is beginning to bank meaningful revenue from the improvement in its services on mobile devices. The company reported obtaining 14 percent of its revenue from advertising for mobile devices.
Total ad revenue was $1.1 billion, and it accounted for 86 percent of total revenue.
Facebook shares rose about 1 percent to $19.50 in regular trading despite a broad market sell-off, then rallied more than 10 percent after hours following the earnings news. Nonetheless, Facebook's stock is still down about 50 percent from the $38 when it went public in May.