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Facebook earnings preview: expect a year-over-year decline, according to Wall Street

According to analysts, it's expected that Facebook will report adjusted earnings around US$1.47 per share, 8% lower year-over-year.
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Tuesday's earnings follow a slew of critical headlines, which include security breaches affecting millions of Facebook users

It's been a tough quarter for Facebook Inc (NASDAQ:FB) and analysts are predicting a loss when it releases third-quarter earnings. 

Tuesday's earnings follow a slew of critical headlines, which include security breaches affecting millions of Facebook users. 

According to analysts, it's expected that Facebook will report adjusted earnings around US$1.47 per share.

READ: Facebook fined £500k by UK watchdog over Cambridge Analytica data breach

That is 8% lower from the year-ago period and its first decline in 13 quarters.

"With core Facebook, current budget allocations are very robust and at record high levels, and the results for future spend intentions and ROI [return-on-investment] perceptions remain very positively skewed," RBC Capital Markets analyst Mark Mahaney wrote in a note to clients Monday.

Facebook has been ranked as having the highest return on investment among digital platforms, according to Mahaney. 

It's estimated that revenue will be US$13.78 billion.

RBC forecasts revenue to come in at slightly above consensus. 

 

 

 



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