Facebook (FB) just reported quarterly earnings after the close. From the looks of it, the company slightly beat bottom line EPS estimates and slightly missed top line revenue estimates. As of now, the stock is slightly lower in after hours trading.
Facebook investors are not used to seeing the stock fall in reaction to earnings. Since the company went public, it has had 11 prior quarterly earnings reports, and the stock has averaged a gain of 5.36% on its earnings reaction day (the next trading day after its post-market report). Below is a snapshot of FB’s historical quarterly reports pulled from our Interactive Earnings Report Database that’s available to Bespoke Institutional subscribers ($195/month or $1,950/year). You can pull up any ticker in the database and immediately see this info going back 10 years.
As shown, FB has gone up on its earnings reaction day seven of eleven times, and it has rallied from the open to the close of trading on its earnings reaction day seven of eleven times as well. The last two times the stock has reported, traders that bought at the open the following morning would have seen gains had they held throughout the entire trading day. Prior to that, though, the stock had fallen from the open to the close three quarters in a row.
In terms of earnings and revenue beats, FB has beaten earnings estimates ten of eleven times, while it has beaten revenue estimates every time. Tonight’s miss on revenues is a first for FB, so let’s see how the shares react tomorrow.