Meta's Earnings: What Should Investors Expect?

Meta Platforms Prepares for Earnings Announcement

Cyber network provider Meta Platforms (NASDAQ:META) is set to announce its earnings results this Wednesday. Looking back at the last quarter, Meta reported revenues of $47.52 billion, surpassing analysts' revenue expectations by 6%. This represents a 21.6% year-over-year increase.

The company also exceeded analysts' EBITDA estimates, showcasing excellence, and revenue forecasts for the next quarter are in line with analysts' expectations. The daily active user count reached 3.48 billion, reflecting a 6.4% year-over-year growth.

In this quarter, analysts expect Meta's revenue to rise by 22.1% year-over-year to $49.55 billion. This is an improvement over the 18.9% increase recorded in the same quarter last year. Adjusted earnings are projected to be $6.67 per share.

In the last 30 days, analysts following the company have generally reaffirmed their forecasts. This indicates that Meta is likely to maintain a stable course as it approaches its earnings announcement. The company has managed to exceed Wall Street's expectations by an average of 2.4% each time over the past two years.

Looking at Meta’s competitors in the consumer internet segment, some have already reported their third-quarter results, providing clues as to what we might expect. Coursera reported a 10.3% year-over-year revenue increase, surpassing analysts' estimates by 2.1%. Netflix, on the other hand, achieved a 17.2% revenue growth in line with consensus estimates. However, following Coursera's results, the stock dropped by 12.7%, while Netflix also experienced a 10.1% decline.

Investors in the consumer internet segment have been quite cautious as they prepare for the earnings announcement, with stock prices showing an average decline of 1.5% over the past month. During this period, Meta is moving forward with a 1.4% increase in earnings announcements, while the average price target set by analysts is $867.18 (current stock price is $753.65).

If a company has excess cash that it doesn't know what to do with, buying back its own shares can be a sensible move—when prices are favorable. We noted that there is a low-priced, ample free cash flow opportunity currently available that involves share buybacks. You can request our report to examine this up-and-coming company.