Facebook beats profit estimates despite federal probe and privacy scandals
Shares of the world’s biggest online social network surged 10%, regaining much of the ground lost in 2018
Washington — Facebook on Wednesday blew past Wall Street profit estimates in the first quarter and set aside $3bn to cover a settlement with US regulators, calming investors who had worried about the outcome of a months-long federal probe. Shares of the world’s biggest online social network jumped more than 10% to $200.50 in after-hours trade. They have now regained much of the ground lost in 2018 amid slowing growth and costs associated with the company’s privacy scandals. The settlement accrual, which Facebook set at $3bn but said could rise as high as $5bn, cut the company’s net income in the first quarter to $2.43bn, or 85c per share. Excluding the charge, Facebook would have earned $1.89 a share, up from $1.69 in the year-ago quarter and easily beating analysts’ average estimate of $1.63 per share, according to IBES data from Refinitiv. Total first-quarter revenue rose 26% to $15.1bn from $12bn in 2018, again beating analysts’ average estimate of $15bn. “This is a strong report...
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