Goldman Sachs’ Heather Bellini maintains a Buy rating on the company, with a price target of $162.
Facebook reported Q3:16 revenue of $7.01 billion, representing 56 percent year-on-year growth and beating the consensus forecasts.
Ad revenue grew 59 percent year-on-year to $6.82 billion, again beating the consensus expectations. The company had reported the second largest beat in absolute dollar terms in Q2.
Non-GAAP operating margins came in at 59.3 percent, ahead of expectations, driven by revenue upside and cost controls.
Facebook’s non-GAAP EPS also beat expectations at $1.09, while below the line items served as a tailwind.
“Given concerns that newer, competitive platforms were starting to impact engagement metrics in the U.S. in particular, we see the ARPU metric as helping to refute this,” Bellini stated.
On the other hand, management’s commentary that ad load was unlikely to be a significant driver of ad revenue growth in H2:CY17 has led to investor “consternation” regarding revenue growth deceleration in CY17.
In fact, an article in
At last check in Thursday's pre-market, Facebook was beginning to rebound from sub-5.5 percent losses, sitting at $121.38 and down 4.5 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.