Earnings Expectations of Technology Giants for the 3rd Quarter!
The world’s largest online social network, Facebook, will announce its third-quarter earnings today after the markets close. It is expected to announce $3.18 per share (EPS), in the earnings report, which means more than 17 percent growth per share compared to the same period a year ago ($2.71). Facebook surpassed earnings per share estimates for all four quarters, with revenue growth of over 35 percent that will reach approximately $29.3 billion. Experts predict that Facebook’s revenue growth will slow significantly in the third and fourth quarters of 2021 as changes implemented in iOS 14.5 will limit its ability to monitor user activity trends. It is estimated that the current year expenses of the social media giant Facebook will vary between 70 and 73 billion dollars. Statistical data showed us that Facebook shares soared more than 6 percent last Wednesday to hit an all-time high of $421.14. Better-than-expected third-quarter earnings results of Facebook could help the stock recoup its recent losses.
Microsoft (MSFT) will announce its earnings for the quarter ended September 2021 after the market closes on Tuesday, October 26. Microsoft, which is expected to increase its revenues compared to the same period of the previous year, may increase its short-term share prices if it exceeds expectations. Microsoft is expected to report earnings of $2.06 per share, up +13.2 percent year over year. Revenues are expected to come to $43.87 billion, up 18.1 percent from the previous quarter. World-changing technology giant Microsoft is expected to generate a total revenue of $327.5 billion in 2021. There is a consensus that Microsoft will not declare a compelling earnings report. Investors should also pay attention to other factors to bet on or stay away from Microsoft stock.
Google’s parent company Alphabet Inc. (GOOGL) will release its earnings report after the market close on October 26 (today). Google is also facing major antitrust lawsuits while having experienced exceptionally rapid profit and revenue growth in recent quarters. Analysts expect EPS and revenue to increase, but at a slower pace than in the previous quarter, in Q3 earnings reports of Google Alphabet. Google’s earnings are expected to average $23.73 per share, up from $16.40 a year ago, while revenue is expected to average $62.4 billion.
Twitter (TWTR) will announce its results for the third quarter of 2021 after the market closes on October 26. Twitter is expected to have a total revenue of between $1.22 and $1.3 billion for the third quarter of 2021. According to Zacks Consensus Estimates, the $1.29 billion level to be announced represents a growth of 37.5 percent from the figure reported in the previous quarter. Twitter’s ad revenues are expected to remain flat in the third quarter amid the coronavirus-induced recession and increased advertiser responsiveness to digital ads. Twitter’s earnings report expectation was created in line with the increase in revenues and the speed of launching new products, and the result is expected to be consistent with the targets set. The Zacks Consensus Estimate for ad revenues was set at $1.14 billion, marking 41.7 percent growth from the figure reported in the previous quarter. Social media company Twitter aims to have 315 million daily monetizable active users (currently about 200 million monetizable users) by the end of 2023 and double its annual revenue to $7.5 billion by the end of that year.
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