Analysts at RBC Capital Markets believed that the financial results of Facebook Inc (NASDAQ:FB) for the second quarter of 2013 will be higher than the consensus expectations of Wall Street analysts. The social network giant is scheduled to report is quarterly earnings performance on July 24.
RBC Capital Markets analysts, Mark Mahaney and Andre Sequin believe that consensus estimates for the quarter are reasonable, but they see modest upward on the revenues of the social network giant based on their intra-quarter data points, channel checks, and model sensitivity work.
Wall Street analysts projected that Facebook Inc (NASDAQ:FB) will post $1.618 billion revenue compared with RBC Capital Markests’ estimate at $1.651 billion. In terms of EBITDA, the research firm estimated that the social network giant will deliver $872 million compared with the $846 million consensus estimate. However, the research firm’s non-GAAP EPS estimate is lower at $0.13 than the $0.14 consensus estimate.
Facebook Inc (FB) showed consistent growth
According to Mahaney and Sequin, their intra-quarter data points is based on ComScore traffic trends, RBC survey results, Facebook product announcements, and results from Google Inc (NASDAQ:GOOG) and eBay Inc (NASDAQ:EBAY). During the quarter, traffic trends from ComScore showed that Facebook Inc (NASDAQ:FB) experienced consistent growth across geographies and the decline in time spent on the company’s website moderated.
On the other hand, the results of the RBC survey found that the users of Facebook Inc (NASDAQ:FB) demonstrated signs of potential disengagement. However, the analysts noted that the social network giant still has a very high usage and Instagram is one of the most popular alternative social medias.
Analysts are positive with introduction of Instagram video
In addition, Mahaney and Sequin observed that Facebook Inc (NASDAQ:FB) continues to roll out new products in the second quarter, and they are positive with the introduction of the Instagram video. Furthermore, the analysts said that the results of Google Inc (NASDAQ:GOOG) and eBay Inc (NASDAQ:EBAY) showed weak macro conditions in certain geographies.
The analysts emphasized that they will focus their attention in the financial earnings result of Facebook Inc (NASDAQ:FB) on four items including user growth and engagement, advertising revenue growth, margin compression, and mobile growth-users and monetization.
RBC Capital Markets analysts reiterated their outperform rating for the shares of Facebook Inc (NASDAQ:FB) with a $32 price target.