The social media network is ready to post its first earnings for fiscal year 2016 however its virtual reality is going to some trouble which they apologized for.
Oculus VR headset, owned by Facebook Inc. was scheduled to start shipping from Wednesday however the company shared some disappointing news with the users who had pre-ordered their headsets on Friday. The virtual reality device maker sent out a letter to all of its customers, apologizing for the recent delay that it announced for the deliveries. To make up for this inconvenience, the company stated that it will allow free shipping to compensate for the delay.
As per the letter, if a user placed an order for the VR device either before or on April 1, their deliveries will reach 10 days late however the company will bare all of the shipping cost and the user will only have the pay the cost of the device.
Brenden Iribe, the chief executive officer of Oculus even mentioned in a tweet that since the first shipment of the Oculus Rift is delayed and will not reach its customers on time, therefore the company will waive off any shipping charges for recompense for the inconvenience that was caused to the customers.
In the letter that the company sent to its customers, it stated that the management realizes how anxiously the customers were waiting to receive their Oculus Rift Headset and that they apologize for not updating the customer’s order status sooner. The reason that the company gave for the inconvenience was the unexpected shortage of components due to which the whole shipping schedule of the product was disturbed. The letter further stated that the customers will be able to view their order status on the company’s website oculus.com by Tuesday April 12, 2016.
The delay did disappoint a number of fans however the makers of the headset stated initially that the first shipment was not going to declare the success or the failure of the headset anyway because it’s a new technology and ultimately everyone wants their hands on it. Furthermore, the founder of Oculus, Palmer Luckey tweeted that it’s a technology that people will want before it becomes a technology that anyone can afford.
On the contrary, the stock of the social media website, despite this delay in the Rift’s shipment showed an upward trend as it jumped by 11% in the past three months. This upward trajectory can be attributed to the first quarter earnings call and the much anticipated F8 Developer Conference. However, many analysts, especially at Deutsche Bank are expecting the price of Facebook’s stock to go down after the first quarter earnings call. The social media company is scheduled to post its financial results for the first quarter of fiscal year 2016 on April 20, 2016.
The analysts at Wall Street are predicting that the company will post adjusted earnings per share (EPS) of $0.623 and total revenue of $5.24 billion however the firm is expecting to fill the estimations of the Street as they conducted channel checks and according to them the company developed a mixed picture. A rating of Buy has been reiterated by the analysts at Deutsche Bank with a twelve month target price of $145; as the analysts at the financial services and research firm remain quite optimistic towards the future prospects of the social media network, although they highlighted a few drawbacks that the company could come across in the near future.