Pivotal Research Describes Facebook's (FB) Q1 as 'Monster Quarter'

Pivotal Research maintained a Buy rating on Facebook (NASDAQ: FB) and raised its price target to $74.00 (from $72.00). Analyst Brian Wieser called Q1 a 'monster quarter'.

"Facebook (FB, Buy) reported another monster quarter, with total revenue up by 71%, and advertising up by 82% year over year (vs. our 65% forecast, and a faster pace than any quarter since 2Q11). Recently, we indicated expectations of ongoing growth to come this year, if at a decelerating pace vs. 1Q14, but still probably more than most observers expected prior to yesterday’s results," said Wieser.

"Facebook’s 82% ad revenue growth during 1Q14 produced ad revenues of $2.3bn during 1Q14. Profit margins were also ahead of expectations, at 55% on a non-GAAP basis, or 43% on a GAAP basis, up from 39% and 26%, respectively during 1Q13. Although the user-apportioned ad revenue by region figures presented on the slides do not necessarily match our estimates for advertiser-apportioned spending by region (which can be inferred from data published in the company’s 10-Q filings), on our initial read on regional trends, there appears to have been a significant acceleration in spending in the US during the quarter, which would be consistent with new product launches given that the US is often where ad products are available first," he added.

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 $61.36 yesterday.

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