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Facebook earnings better than expected

2:30 PM, Oct 23, 2012   |    comments
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Matt Krantz, USA TODAY

Facebook reported better than expected third quarter earnings Tuesday, giving investors hope that the company might find positive momentum.

In after hours trading, Facebook stock is up 67 cents, or 3.4%, to $20.16.

The company reported adjusted earnings of 12 cents a share, topping estimates calling for 11 cents a share profit. Revenue came in a $1.3 billion, up 32% from the same period last year.

Investors have been eagerly awaiting Facebook's third-quarter results, especially as another lock-up period expires allowing employees to sell shares for the first time. Investors and employees holding 234 million shares of Facebook will be allowed to sell those shares for the first time on Monday, Oct. 29.

How the stock reacts to the earnings news when the market opens Wednesday may hold huge sway on what employees decide to do with their shares, says Francis Gaskins of IPO Desktop Premium. If investors push the shares lower, employees might decide they should sell and lock in what's left of their gains. Shares of Facebook have plummeted since the May initial public offering, when the shares were priced at $38 a share. Shares of Facebook closed 18 cents higher to $19.50 Tuesday.

USA TODAY

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