| SAN FRANCISCO
SAN FRANCISCO May 22 Four of Facebook's major
underwriters -- Morgan Stanley, Goldman Sachs, JPMorgan and Bank
of America -- reduced their financial estimates for the
soon-to-be-public company following the release of a revised
prospectus on May 9 that noted the negative impact of mobile
users on Facebook's business.
While Facebook did not provide any specifics in its amended
S-1 filing, the four underwriters reduced their earnings and
revenue estimates for both the second quarter of 2012 and the
full year within the next two days, according to sources.
The new estimates highlighted a continued slowdown in
Facebook's growth, with the banks forecasting 30.4 percent
year-on-year 2012 revenue growth on average, instead of the 36.7
percent growth previously expected. In 2011, Facebook's revenue
grew 87.9 percent year-on-year to $3.71 billion.
The new numbers were relayed to big investors through phone
calls and conference calls, according to investors. Bank of
America held a conference call on May 10 with analyst Justin
Post, where the underwriter revealed the lowered estimates.
Here are the detailed figures from the four banks, according
to one of the investors who received the new numbers.
Lowered full year revenue estimate for 2012
Morgan Stanley -- $4.854 bln (new)from $5.036 bln (old)
Bank of America -- $4.815 bln (new) from $5.040 bln (old)
JPMorgan -- $4.839 bln (new) from $5.044 bln (old)
Goldman Sachs -- $4.852 bln (new) from $5.169 bln (old)
Lowered estimates for second-quarter 2012
Morgan Stanley -- $1.111 bln (new) from $1.175 bln (old)
Bank of America -- $1.100 bln (new) from $1.166 bln (old)
JPMorgan -- $1.096 bln (new) from $1.182 bln (old)
Goldman Sachs -- $1.125 bln (new) from $ 1.207 bln (old)
Lowered 2013 Earnings per share estimate
Morgan Stanley -- 83 cents (new) from 88 cents
Bank of America -- 64 cents (new) from 66 cents
JPMorgan -- 66 cents (new) from 70 cents
Goldman Sachs -- 63 cents (new) from 68 cents