Andres Padilla's Contributor Page
Last Updated: July 26 2020 (Prior to the 2Q2020 earnings release).
View: Bullish
Model Description: In forecasting Facebook's Q2 earnings, Management guidance and Facebook's response to the pandemic were major factors in their projected income statement. As a result of increased stay-at-home orders, Facebook's Monthly Active Users (MAU) is projected to increase significantly which will augment revenue. Although ad demand lowered temporarily, ad prices are projected to continue rising. Thus, ad revenue will continue to grow all across the globe. Additionally, the tax rate will remain constant at 18% for the upcoming quarters. Furthermore, based on the $52-$56 billion range Facebook management provided, expenses are projected to be on the lower end of the range. Revenue, Net Income, and EPS is projected to rise significantly for Facebook in the coming quarters and next year. However, Facebook may experience slow growth at the end of the year and beginning of 2021 as the pandemic guidelines are lifted. In conclusion, Facebook will continue to increase in value as the tech industry trends upward.
View: Bullish
Model Description: In forecasting Facebook's Q2 earnings, Management guidance and Facebook's response to the pandemic were major factors in their projected income statement. As a result of increased stay-at-home orders, Facebook's Monthly Active Users (MAU) is projected to increase significantly which will augment revenue. Although ad demand lowered temporarily, ad prices are projected to continue rising. Thus, ad revenue will continue to grow all across the globe. Additionally, the tax rate will remain constant at 18% for the upcoming quarters. Furthermore, based on the $52-$56 billion range Facebook management provided, expenses are projected to be on the lower end of the range. Revenue, Net Income, and EPS is projected to rise significantly for Facebook in the coming quarters and next year. However, Facebook may experience slow growth at the end of the year and beginning of 2021 as the pandemic guidelines are lifted. In conclusion, Facebook will continue to increase in value as the tech industry trends upward.
FB Earnings Model (Andres Padilla).xlsx | |
File Size: | 147 kb |
File Type: | xlsx |
Andres Padilla is a finance undergraduate student at Villanova University. He is a licensed real estate agent for Weichert Realtors in NJ. Additionally, he has a passion for personal growth and professional development. Andres is a fellow in several professional development programs which recognize high-achieving diverse talent. On campus, Andres is the Vice President for Villanova's ALPFA Chapter and a member of numerous business societies. In his free time, Andres enjoys exercise, spending time with family, and getting together with friends.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.