Wednesday, July 25, 2012

XHB, FB Update ...

  • ETH reported disappointing quarterly and year-end results with Q4 EPS missing consensus by 2c and revenues missing by nearly $4MM.  The stock is down more than 9% in AH.
  • RYL also missed on the top and bottom-line.  Although Y/Y results were impressive, it appears overall expectations within the homebuilding industry were too lofty.  RYL is down 5c in AH.
  • XHB ended the day down 1%.

Facebook (FB)
  • FB is down nearly 8% in AH as one of its main revenue generators, Zynga (ZNGA) reported very disappointing quarterly results.  ZNGA's revenues of $332.5MM were nearly $11MM short of expectations.
  • ZNGA also lowered its guidance.  It partly blamed the miss and the lower outlook on FB, saying "a faster decline in existing Web games due in part to a more challenging environment on the Facebook Web platform, and ...".
  • FB reports Q2 numbers tomorrow after the close.  We're looking for $1.13bil in revenues, or a 26.8% Y/Y growth.  Our EPS estimate for the quarter is $0.10.  The Street is expecting revenues and EPS of $1.15bil and $0.12, respectively.  Of course, the 'whisper' numbers are now likely lower than the official estimates after the ZNGA debacle.
  • We're not sure about the user estimates for FB, but our estimates for the quarter include approx. 977.45MM monthly active users (MAU) and $1.21 in monthly average revenue per user (ARPU).  Our ARPU estimate represents a 0.6% and a 4.25% sequential and Y/Y decline, respectively. 

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