Facebook Earnings Revision By Numbers

Posted on May 23 2012 - 10:03am by Editorial Staff

Seems tough time surges over the head on the world’s largest social networking company Facebook (which owe 901 million+ users), starting the first day of trading experienced delays due to the glitches and intense demand that accompanied social network’s initial public offering listing. These are technical problem but other happenings are also around, the Financial Industry Regulatory Authority chairman stated that regulators are planning to review the allegations that Facebook’s own underwriter: Morgan Stanley shared negative news with big investors.

Over the top, the new estimates highlighted a continued slowdown in Facebook’s growth, with the banks forecasting 30.4 percent year-on-year 2012 revenue growth on average, instead of the 36.7 percent growth previously expected. In 2011, Facebook’s revenue grew 87.9 percent year-on-year to $3.71 billion.

Here are the detailed figures from the four banks, according to one of the investors who received the new numbers.

Lowered full year revenue estimate for 2012

  • Morgan Stanley – $4.854 billion (new) from $5.036 billion (old)
  • Bank of America – $4.815 billion (new) from $5.040 billion (old)
  • JPMorgan – $4.839 billion (new) from $5.044 billion (old)
  • Goldman Sachs – $4.852 billion (new) from $5.169 billion (old)

Lowered estimates for second-quarter 2012

  • Morgan Stanley – $1.111 billion (new) from $1.175 billion (old)
  • Bank of America – $1.100 billion (new) from $1.166 billion (old)
  • JPMorgan – $1.096 billion (new) from $1.182 billion (old)
  • Goldman Sachs – $1.125 billion (new) from $ 1.207 billion (old)

Lowered 2013 Earnings per share estimate

  • Morgan Stanley – 83 cents (new) from 88 cents
  • Bank of America – 64 cents (new) from 66 cents
  • JPMorgan – 66 cents (new) from 70 cents
  • Goldman Sachs – 63 cents (new) from 68 cents

(Image Source: Facebook logo, Featured Image)

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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.