Facebook Delays Earnings by a Day as Zuckerberg's Schedule Shifts

Mark Zuckerberg's testimony to a House subcommittee was pushed back to Wednesday, necessitating the earnings report change.
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Facebook  (FB) - Get Report announced Monday that it was delaying its second-quarter earnings report to Thursday from Wednesday because of a scheduling conflict for CEO Mark Zuckerberg.

“Facebook's founder and CEO is scheduled to provide testimony before the House Judiciary Committee on July 29,” the company said in a statement. Zuckerberg will discuss “online platforms and market power,” according to the committee’s web site.

Zuckerberg was originally slated to testify Monday, but the hearing was postponed in deference to events honoring Rep. John Lewis, who died last week.

In its first-quarter earnings announcement, Facebook reported a steep drop in advertising revenue for the last three weeks of March, but said revenue improved to flat compared to a year earlier in the first three weeks of April. Advertising accounts for 99% of Facebook’s revenue.

The coronavirus initially stifled advertising, but companies grew more eager, as consumers stuck at home spent more time on social media.

Morningstar analyst Ali Mogharabi is enthusiastic about Facebook’s advertising prospects.

“We have increased our [fair value] estimates for Alphabet  (GOOGL) - Get Report, Facebook, Pinterest  (PINS) - Get Report, Snap  (SNAP) - Get Report, and Twitter  (TWTR) - Get Report, as the coronavirus-related hit to digital advertising looks softer than we initially anticipated,” he wrote in a report earlier this month.

“We think advertisers will continue to allocate more of their ad dollars toward direct-response campaigns after the pandemic. The main beneficiary of what may become a lasting change is likely to be Facebook.”

Mogharabi put Facebook’s fair value at $245. It recently traded at $234.05, up 1.45%, and has risen 14% year to date.