Facebook (FB) is set to report 3Q20 results after the close today.

Analysts are forecasting the social media company to report EPS of $1.91 and revenue of $19.8 bln.

The company didn't provide specific EPS or revenue guidance for Q3, but, during the Q2 earnings conference call, FB said that it expects Q3 y/yr ad revenue growth to be "roughly similar to July's performance."

• During the first three weeks of July, ad revenue growth was about inline with Q2's 10% growth.

• In Q2, DAUs increased by 12% yr/yr to 1.79 bln.

• MAUs also increased by 12% to 2.70 bln.

TECHS

FB expense and capital expenditure guidance for FY20 currently stands at $52-$55 bln and $16 bln, respectively.

RESULTS:

Reports Q3 (Sep) earnings of $2.71 per share, $0.80 better than the S&P Capital IQ Consensus of $1.91; revenues rose 21.6% year/year to $21.47 bln vs the $19.79 bln S&P Capital IQ Consensus.

DAUs were 1.82 billion on average for September 2020, an increase of 12% year-over-year.

Facebook monthly active users (MAUs) -- MAUs were 2.74 billion as of September 30, 2020, an increase of 12% year-over-year.

As expected, in the third quarter of 2020, we saw Facebook DAUs and MAUs in the US & Canada decline slightly from the second quarter 2020 levels which were elevated due to the impact of the COVID-19 pandemic. In the fourth quarter of 2020, we expect this trend to continue and that the number of DAUs and MAUs in the US & Canada will be flat or slightly down compared to the third quarter of 2020.

We expect our fourth quarter 2020 year-over-year ad revenue growth rate to be higher than our reported third quarter 2020 rate, driven by continued strong advertiser demand during the holiday season.

Looking ahead to 2021, we continue to face a significant amount of uncertainty. We believe the pandemic has contributed to an acceleration in the shift of commerce from offline to online, and we experienced increasing demand for advertising as a result of this acceleration. Considering that online commerce is our largest ad vertical, a change in this trend could serve as a headwind to our 2021 ad revenue growth.

We expect 2020 total expenses to be in the range of $53-54 billion, narrowed from our prior range of $52-55 billion.

We anticipate that our full-year 2021 total expenses will be in the range of $68-73 billion, driven by continued investments in product development and technical talent, as well as a return to more normal levels of spend in areas like office operations and travel. However, these are preliminary estimates as we have not yet finalized our 2021 budget.

We expect 2020 capital expenditures to be approximately $16 billion, unchanged from our prior outlook. For 2021, we anticipate capital expenditures to be in the range of $21-23 billion, driven by investments in data centers, servers, network infrastructure, and office facilities. Our outlook includes spend that was delayed from 2020 due to the impact of the COVID-19 pandemic on our construction efforts.

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