NEW YORK (TheStreet) — Facebook’s (FB_) second-quarter earnings focused on mobile revenue. Shares were soaring in premarket trading Thursday as Wall Street raised price targets and upgraded shares.
The Menlo Park, Calif.-based social networker earned 19 cents a share on $1.813 billion in revenue for the quarter, as mobile advertising revenue accounted for 41% of advertising revenue this quarter. Total advertising revenue was $1.6 billion, 88% of total revenue, and up 61% year over year.
Analysts surveyed by Thomson Reuters were expecting Facebook to earn 14 cents a share on $1.62 billion in revenue for the quarter.
The company ended the quarter with 1.15 billion monthly active users (MAUs), up 21% year over year. There was a 51% annual increase in mobile MAUs, which drove the strength in mobile revenue. Daily active users (DAUs) were 699 million, up 27% annually.
Following the earnings, many analysts were bullish, with several upgrading shares and raising price targets. Here’s what some analysts on Wall Street had to say:
JPMorgan analyst Doug Anmuth (Overweight, $44 PT)
“Facebook delivered its strongest quarter yet as a public company–results that we think could be thesis-changing for many–and we would continue to buy Facebook shares even after the ~17% move up in the after-market. Our revenue and nonGAAP EPS estimates increase 12% and 38% for 2013, and 22% and 46% for 2014.”
Topeka Capital Markets analyst Victor Anthony (Buy, $40 PT)
“Facebook needed to, and delivered, a blowout quarter. What is clear from the results is advertisers have validated Facebook as an advertising platform. For full year 2013, our revenue and Adj. EPS increases to $7.196B and $0.71, resp, from $6.733B and $0.63. We still see more upside for the stock and recommend purchase. There are several well defined catalysts over the next two years that should lead to further share price appreciation, including: 1) monetizing Instagram, which, per CEO Zuckerberg, will generate “a lot of profits”, 2) launch of auto-play video ads, 3) monetizing Graph Search, 4) a bigger push into e-commerce, and 5) the potential for S&P 500 inclusion. Further, only 1mm or 6% of FB’s 18mm potential advertisers are buying ads, implying a huge runway for advertiser uptake exists.”
Sterne Agee analyst