2 Things to Look for When Facebook Reports Earnings Wednesday

Investors should watch what Facebook (FB) says about its revenue growth and spending when it reports earnings on Wednesday, according to Scott Kessler, an equity analyst at S&P Capital IQ. 'If the company can show that it still has robust growth ahead, and its controlling expenses, I think that will be a recipe for an encouraging Q2 earnings report,' stated Kessler. The analyst pointed out that the strong dollar had a negative impact on revenues last quarter, and margins were negatively impacted by Facebook's aggressive ramp up of new offerings and features. But Kessler does expect to see margin improvement when the company reports results. Wall Street analysts expect Facebook to earn $0.47 a share, on revenue of just under $4 billion. 'What a lot of people don't realize is that they have a number of levers to growth that they've just started to pull,' said Kessler, who cited video, Instagram, Messenger and WhatsApp as growth vehicles.