User Growth, Engagement Key for Facebook (FB) in Q1 - Cowen

Cowen and Company is offering a preview of what to expect with Facebook's (Nasdaq: FB) Q1 results, which are expected out after markets close on April 23rd.

Analyst John Blackledge sees Facebook reporting Q1 revenue of $2.47 billion with mobile ad revs of $1.26 billion, and adjusted EPS of $.28. Key focus points for investors include:

1. User growth, which we expect will remain strong following CEO Zuckerberg's comments 3/26 that mobile users exceeded 1BN (above our 995MM forecast);

2. Engagement with the platform (we forecast steady DAU/MAU ratio of 61.6% vs. 61.8% in 4Q14 but up from 59.9% in 1Q13);

3. Instagram ad monetization update and any usage metrics (FB recently noted 200MM MAUs);

4. Update on video advertising (We expect $1BN in video ad revenue in 2014); and

5. Detail on the integration of WhatsApp and OculusVR into the business and commentary on the pace of future M&A.

Cowen has Facebook at Outperform with a price target of $85.

For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $58.94 yesterday.

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