'Street estimates for Q1 are likely optimistic': Here's what 4 analysts expect when Facebook reports quarterly earnings

Facebook's founder and CEO Mark Zuckerberg speaks at the Viva Tech start-up and technology summit in ParisReuters

• Wall Street has mixed hopes for Facebook's first-quarter report, with all eyes on how hard its advertising revenue will slide amid the coronavirus pandemic.
• The company revealed a surge in usage in a March 24 blog post, and analysts want to know whether the rise in popularity can offset a decline in revenue elsewhere.
• Any update for second-quarter performance will also drive post-earnings stock moves, as analysts expect the period to show the majority of the coronavirus' financial damage.
• Here's what four Wall Street analysts expect from the social media giant's earnings report.
• Visit the Business Insider homepage for more stories.

Even as Facebook previews a jump in user activity amid widespread lockdowns, Wall Street has mixed hopes for the firm's first-quarter report.

The social media titan is slated to release its first-quarter results Wednesday afternoon, joining tech peers Apple, Amazon, and Microsoft in the busiest week of earnings season. Software-heavy firms like Facebook stand to impress investors as they skirt much of the supply chain disruption wrought by the coronavirus. Yet the company's ad revenue will likely slide through the first half of the year as other firms slash spending and brace for a recession.

Here's what analysts surveyed by Bloomberg expect:

• Earnings per share (GAAP): $1.71 expected
• Revenue: $17.30 billion expected

Facebook shares are up nearly 9% from its pandemic-induced lows, riding a broad market upswing fueled by reopening plans and government stimulus. The stock bounced nearly 3% on Friday alone after the announcement of its "Rooms" teleconferencing product.

The company said in a March 24 blog post that the pandemic and related quarantines have pushed user engagement through the roof, with total messaging spiking 50% over the past month. Analysts are keen to know where the engagement jump is concentrated, and whether it will prop up revenue while advertising activity sinks.

Here's what four top Wall Street firms expect from the company's first quarter report. Facebook closed at $182.91 per share on Tuesday, down about 9% year-to-date.

Read more: Goldman Sachs recommends investors buy 'quality at a reasonable price.' Here are the firm's top 10 stock picks that fit the bill.