NEW YORK (TheStreet) -- Facebook (FB) - Get Report stock is soaring by 7.35% to $101.39 in after-hours trading on Wednesday, after the company reported 2015 fourth quarter earnings and revenue that beat expectations after the market close today. 

The social network posted adjusted earnings of 79 cents per share, ahead of analysts' expectations for 68 cents per share.

Revenue came in at $5.84 billion for the quarter, compared to the $5.36 billion expected by analysts. 

Both earnings and revenue increased year-over-year, up from adjusted earnings of 54 cents per share on revenue of $3.85 billion for the fiscal 2014 fourth quarter.

The social network's success was driven by substantial growth within its mobile advertising unit. Mobile advertising revenue was $4.51 billion, ahead of analysts' expectations for $4.09 billion.

Mobile advertising represented about 80% of all of Facebook's advertising revenue, which totaled $5.74 billion for the quarter. Analysts had estimated for $5.15 billion, according to CNBC. 

Additionally, average revenue per user (ARPU), or how much money the company makes off of its existing users, was $3.73 billion for the most recent period. Analysts had estimated for $3.43 billion, CNBC reports. 

TheStreet Recommends

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