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FB vs. GOOGL: Which FANG Stock Had the Better Earnings Report?
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Facebook’s latest earnings report showed a 50% revenue increase year over year, while Alphabet (GOOGL - Free Report) fired back with a 26% revenue uptick. With both of these FANG stocks clearly shining on the top line in the past quarter, it is time for investors to dig into both reports to find out more about this outperformance.
Earnings and Revenue Surprise
Facebook reported quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.36 per share. Amidst scandal and trial, the company’s share prices have steadily increased, gaining 11.45% since the earnings release two weeks ago.
Alphabet reported earnings of $9.93 per share, also topping the Zacks Consensus Estimate of $9.21. Since the earnings report release, the company has seen a 3.6% increase in share prices, staying consistent with its trend before the release.
Facebook reported revenue of $11.79 billion, besting the Zacks Consensus Estimate of $11.45 billion. The company has seen increased concentration of revenue within mobile advertisements. This past quarter, 91% of revenue fell in this category, compared to 85% in the previous year.
Alphabet reported revenue of $26.5 billion, dominating the Zacks Consensus Estimate of $24.3 billion. Of this, 17.9% of net sales came from the company’s “Other Revenues,” which is comprised of apps, in-app purchases, Google Cloud offerings, hardware, and other products.
Estimate Revisions
Earnings estimate revisions in the last 30 days help to paint a picture of how analysts have reacted to these reports.
Analyst sentiment for the current and upcoming quarters has been the defining difference between these two impressive tech companies. Facebook is doing exceptionally better than Alphabet for both of these periods, earning 67% and 58% agreement to the upside, respectively, among revising analysts. In opposite fashion, Google received 68% and 77% agreement to the downside, respectively.
Both companies are in different phases of development and growth, so it may be difficult to accurately compare earnings and revenue surprises and growth rates, but earnings estimate revisions are an objective means by which we can evaluate where a stock may go.
Bottom Line
Facebook and Google beat earnings estimates revisions while posting positive growth in the most recent quarter. Along with this, both companies saw substantial revenue growth year over year.
While these organizations put up impressive numbers, analyst sentiment has been stronger for Facebook in the wake of the report. Still, both companies are holding a Zacks Rank #3 (Hold) right now.
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FB vs. GOOGL: Which FANG Stock Had the Better Earnings Report?
Facebook’s latest earnings report showed a 50% revenue increase year over year, while Alphabet (GOOGL - Free Report) fired back with a 26% revenue uptick. With both of these FANG stocks clearly shining on the top line in the past quarter, it is time for investors to dig into both reports to find out more about this outperformance.
Earnings and Revenue Surprise
Facebook reported quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.36 per share. Amidst scandal and trial, the company’s share prices have steadily increased, gaining 11.45% since the earnings release two weeks ago.
Alphabet reported earnings of $9.93 per share, also topping the Zacks Consensus Estimate of $9.21. Since the earnings report release, the company has seen a 3.6% increase in share prices, staying consistent with its trend before the release.
Facebook reported revenue of $11.79 billion, besting the Zacks Consensus Estimate of $11.45 billion. The company has seen increased concentration of revenue within mobile advertisements. This past quarter, 91% of revenue fell in this category, compared to 85% in the previous year.
Alphabet reported revenue of $26.5 billion, dominating the Zacks Consensus Estimate of $24.3 billion. Of this, 17.9% of net sales came from the company’s “Other Revenues,” which is comprised of apps, in-app purchases, Google Cloud offerings, hardware, and other products.
Estimate Revisions
Earnings estimate revisions in the last 30 days help to paint a picture of how analysts have reacted to these reports.
Analyst sentiment for the current and upcoming quarters has been the defining difference between these two impressive tech companies. Facebook is doing exceptionally better than Alphabet for both of these periods, earning 67% and 58% agreement to the upside, respectively, among revising analysts. In opposite fashion, Google received 68% and 77% agreement to the downside, respectively.
Both companies are in different phases of development and growth, so it may be difficult to accurately compare earnings and revenue surprises and growth rates, but earnings estimate revisions are an objective means by which we can evaluate where a stock may go.
Bottom Line
Facebook and Google beat earnings estimates revisions while posting positive growth in the most recent quarter. Along with this, both companies saw substantial revenue growth year over year.
While these organizations put up impressive numbers, analyst sentiment has been stronger for Facebook in the wake of the report. Still, both companies are holding a Zacks Rank #3 (Hold) right now.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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