Facebook (FB) will report fourth quarter results this afternoon. The stock hit a record high this session after breaking out to an eighteen-month high earlier this month.

Analysts expect fourth quarter adjusted EPS to increase 8% to $2.58 with revenue up 24% to $20.9 bln.

Expectations are high as Facebook continues to dominate the online advertising market alongside Alphabet (GOOG/L). Instagram has taken the torch as the company's resident driver for growth. The company has gained traction with story advertisements on both Facebook and Instagram.

Facebook exceeded revenue estimates for the fourth consecutive quarter three months ago.

Earnings growth is currently expected to be 10% in 2020, down from 13%.

FB has a market value of ~$630 bln, the stock trades at just under 24x EPS estimates for 2020, which is in line with Apple (AAPL), and a premium to slower growing and larger Alphabet (GOOGL).

RESULTS:

Facebook misses by $0.02, reports revs in-line. Reports Q4 (Dec) earnings of $2.56 per share, $0.02 worse than the S&P Capital IQ Consensus of $2.58

Revenues rose 24.6% year/year to $21.08 bln vs the $20.9 bln S&P Capital IQ Consensus.

  • Total expense +34%.

  • Facebook daily active users (DAUs) -- DAUs were 1.66 billion on average for December 2019, an increase of 9% year-over-year.

  • Facebook monthly active users (MAUs) -- MAUs were 2.50 billion as of December 31, 2019, an increase of 8% year-over-year.

  • Family daily active people (DAP) -- DAP was 2.26 billion on average for December 2019, an increase of 11% year-over-year.

  • Family monthly active people (MAP) -- MAP was 2.89 billion as of December 31, 2019, an increase of 9% year-over-year.

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