Facebook is expected to report higher third-quarter profit after the closing bell, as revenue is seen rising 40 percent from a year ago on higher sales of digital ads.

The company is expected to say earnings rose to $1.28 per share, according to the consensus estimate of analysts compiled by Thomson Reuters, up from $1.09 a year earlier.

Revenue expectations for the period are $9.84 billion for the period, up from $7 billion, based on the estimates of Wall Street analysts who cover the stock.

Online marketers are buying more Facebook ads to target messages at mobile internet users.

The company is expected to capture 21 percent of all digital ad sales this year, according to the research firm eMarketer.

Facebook’s ability to target digital ads at users based on their “likes” and other online behavior is so effective that some in Congress want to regulate its ability to sell political advertising.

As company’s general counsel was being grilled in Washington, investors bid Facebook shares to a record high of $182.69 early Wednesday.

What to watch for now:

The company will hold a conference call at 5 p.m. ET to discuss the results.

Last quarter, Facebook CFO David Wehner narrowed the company’s 2017 spending forecast, essentially adjusting it down and sending Facebook shares higher.

This is a breaking news story. Check back for updates.

Source: Tech CNBC
Facebook reports third-quarter earnings after the bell