Facebook Beats Second-quarter Earnings Expectations

Shares of Facebook Inc. were falling 1.4% after hours Wednesday after the company reported second-quarter earnings. Facebook reported net income of $3.89 billion, or $1.32 per share, up from $2.28 billion, or 78 cents per share, in the year-earlier period. The FactSet consensus was for earnings per share of $1.12. Total revenue was $9.3 billion, up from $6.4 billion in the year-earlier period and above the FactSet consensus of $9.2 billion. Facebook reported 1.32 billion daily active users, a 17% increase year-over-year and in line with FactSet consensus of 1.32 billion. It reported 2.01 billion monthly active users, also a 17% increase year-over-year, and above the FactSet consensus of 1.93 billion. Shares of Facebook have gained 13% in the past three months, outperforming the S&P 500 which has gained 4%.