Facebook earnings top $9 billion, but Apple change puts sales in the hot seat
"Facebook Inc. combated a wave of negative news reports with positive earnings results Monday afternoon, but sales and the company’s revenue forecast came up short of expectations amid concerns about a change from Apple Inc.
Facebook reported third-quarter earnings of $9.19 billion, or $3.22 a share, topping the $2.71 a share it reported last year, on sales of $29.01 billion, up from $21.47 billion a year ago. Those results outstripped the average forecast for profit of $3.19 a share but not on sales, which was $29.49 billion, according to analysts polled by FactSet.
Facebook also missed in its revenue forecast, which calls for sales of $31.5 billion to $34 billion, while analysts were forecasting $34.72 billion. Chief Financial Officer David Wehner said that forecast “reflects the significant uncertainty we face in the fourth quarter in light of continued headwinds from Apple’s iOS 14 changes, and macroeconomic and COVID-related factors.”
Facebook, which has loudly decried the impact of Apple’s privacy change for more than a year, is less likely to be gashed than Snap Inc.was when it announced results last week. Analysts assert Facebook has been proactive in addressing the issue, and boasts a much larger and diverse list of advertisers than Snap."