Needham analysts lowered Facebook revenue and earnings per share estimates for the first half of the year as consumer demand falls and ad projections start to decline.
Needham analysts lowered Facebook revenue and earnings per share estimates in the near term as consumer demand falls and ad projections start to decline.
The analysts said they assume the coronavirus will "[resolve] itself by mid-June," so aren't revising estimates for the second half of 2020 or 2021. Sheryl Sandberg, chief operating officer of Facebook, was once chief of staff for U.S. Treasury Secretary Lawrence Summers.Needham analysts lowered their estimates for Facebook's revenue for the first part of the year due to the spread of coronavirus, its effects on consumer demand and the fallout for advertising.
In a research note Friday, analysts Laura Martin and Dan Medina wrote that channel checks show lower spending in travel, retail, consumer packaged goods and entertainment, which together represent 30% to 45% of Facebook's total revenue. They also wrote that six of the largest 10 advertising countries are "currently COVID-19 hotspots."
The analysts lowered their March quarter and June quarter revenue and earnings per share estimates, but said they were not making revisions to estimates for the second half of 2020 or for 2021 since they expect the coronavirus crisis to calm down by mid-June.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Starbucks says China business is recovering, but second-quarter will take hit to sales from coronavirus closuresStarbucks warned investors on Thursday that store closures in China due to the coronavirus outbreak are likely to result in a 50% decline in its same-store sales in China during its fiscal second quarter.
Read more »
House passes emergency spending, California governor declares state of emergencyAs of Wednesday, more than 95,000 cases of coronavirus have been reported, resulting in at least 3,250 deaths.
Read more »
Airbnb has a specific policy for coronavirus-related cancellationsThe company has rolled out a specific policy for bookings that need to be changed because of issues relating to the coronavirus.
Read more »
International Criminal Court approves Afghanistan investigationThe global court upheld an appeal by prosecutors against a pretrial chamber’s rejection in April last year of Prosecutor Fatou Bensouda’s request to open a probe into war crimes in Afghanistan.
Read more »
Flight cuts, unpaid leave and hiring freezes: Airlines race to limit impact as coronavirus saps travel demandSouthwest cut its revenue forecast, while United and JetBlue are slashing flights to combat coronavirus-related drop in demand
Read more »
Cut flights, unpaid leave and hiring freezes: Airlines race to stem impact from coronavirusSouthwest cut its revenue forecast, United and JetBlue slash flying to combat coronavirus-related drop in demand.
Read more »