Facebook Q2 Earnings Preview: What to Expect

 By 
Seth Fiegerman
 on 
Facebook Q2 Earnings Preview: What to Expect

Mark Zuckerberg has repeatedly stated that Facebook is now a "mobile company," but investors will still be looking for proof that it is making progress on the mobile front when the company reports its second-quarter earnings Wednesday afternoon.

The consensus among Wall Street analysts is that mobile ads will account for 33% of Facebook's total revenue for the June quarter, up from 30% the previous quarter and 0% a little more than a year ago.

Overall, analysts are looking for Facebook to report earnings per share of $0.14 on revenue of $1.62 billion for the quarter. By comparison, Facebook reported earnings of $0.12 per share on revenue of $1.18 billion in the same quarter a year ago.

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As always, analysts and investors will be looking for any indications of the performance of Facebook's various paid products. Since going public a little more than a year ago, Facebook has introduced a range of potential revenue streams, including Gifts, retargeted ads and more. Rumors also allege that Facebook is preparing to launch video ads, which may come up as a question during the earnings call.

Facebook missed earnings estimates in the March quarter, but beat on revenue with better-than-expected growth on mobile, helping to send the stock up initially. However, the stock later dropped below $25 a share and has hovered around that mark in recent weeks as investors appear to remain uncertain about Facebook's long-term potential for growth.

[img src="http://media.ycharts.com/charts/5d6ed40eb7e317471de2d52f3dcccc49.png" caption="" credit="" alt="FB Chart"]FB data by YCharts

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