Skip to main content

NEW YORK (TheStreet) -- Facebook (FB) stock rose by 0.34% to $97.34 in Tuesday's trading session, as analysts expect a year-over-year increase in both earnings and revenue when the company reports its 2015 fourth quarter financial results, due out after tomorrow's market close. 

Even so, Bank of America analyst Justin Post believes that Facebook would need to post revenue of at least $5.43 billion, above analysts' estimates, to sustain its stock momentum, MarketWatch reports.

Additionally, the company might lower its fiscal 2016 forecast to reflect macroeconomic uncertainties, MarketWatch notes. SunTrust Robinson Humphrey analyst Bob Peck lowered his price target on the stock to $120 from $125 this week for that very reason.

Wall Street is nonetheless largely bullish on the company, and Post and Peck both reiterated "buy" ratings this week. 

Ads on Facebook's native platform and on Instagram will likely help the company achieve "another solid quarter," Bank of America wrote, according to MarketWatch.

Analysts surveyed by Thomson Reuters have forecast for earnings of 68 cents per share on revenue of $5.36 billion for the quarter. Last year, Facebook reported adjusted earnings of 54 cents per share on revenue of $3.85 billion for the fourth quarter. 

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.

Facebook's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and expanding profit margins outweigh the fact that the company has had somewhat disappointing return on equity. 

You can view the full analysis from the report here: FB

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Image placeholder title


data by