Why Growth In Asia Should Buoy Facebook's Earnings Report

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Shares of Facebook FB opened higher on Wednesday, just hours before the tech behemoth is set to release its pivotal third-quarter earnings report. Despite its dominance of the social media world, Facebook is still an exciting growth prospect-and the company has a few key segments to thank for this rapid expansion.

Before jumping into the specifics, we should note that Facebook is, in fact, poised for remarkable top and bottom-line growth this quarter. According to our current consensus estimates, the company is expected to post earnings of $1.29 per share and revenues of $9.88 billion, which would represent year-over-year gains of 18.64% and 40.90%, respectively.

But how has Facebook been able to capture this growth after years at the top of the global social media industry? Well, one successful strategy has been the company's ability to target growing markets-such as the Asia-Pacific region.

With several population-rich countries still expanding their access to the internet, Asia has proven to be a major source of growth for Facebook, and if our consensus estimates hold up, it will prove to be the company's best performer in terms of monthly active user (MAU) growth this quarter.

In fact, our current consensus estimates are calling for Facebook to report 782 million MAUs in the Asia-Pacific region at the end of Q3. That's a sizable chunk of the company's roughly two billion total users, and at a year-over-year growth rate of 24.32%, it should make the region Facebook's fast grower.

These important, stock-driving estimate are from our exclusive non-financial metrics consensus estimate file. These estimates are updated daily and are based on the independent research of expert stock analysts. Learn more here>>>

Of course, growth in Asia is just a small piece of what investors will be focused on when Facebook report this afternoon. Nevertheless, it's important to note where this Wall Street darling is finding its user growth.

Make sure to check back here for our full analysis once Facebook reports this afternoon!

Want more stock market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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