Meta and Apple Shine with Record Earnings in Q4 2024
The Q4 2024 earnings season is in full swing, showcasing a strong lineup of reports this week. So far, the results have been positive, beginning impressively with major banks.
Among the standout performers are two members of the Mag 7: Apple AAPL and Meta Platforms META. Both companies recorded exceptional quarterly results, highlighting their business success this period.
Meta Achieves Record Sales and Profit
Meta Platforms announced adjusted earnings per share (EPS) of $8.02 alongside record sales totaling $48.4 billion. This translates to growth rates of 50% and 21%, respectively. The net income hit $20.9 billion, marking a historic high for the company.
Over the past year, stock prices have surged nearly 80%, significantly outperforming the S&P 500.
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Importantly, the advertising segment thrived, with revenue reaching $46.8 billion, surpassing our expectations and reflecting 20% year-over-year growth. Recent advertising results have consistently exceeded projections, as illustrated below.
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Moreover, Meta saw user growth, with Family Daily Active People (DAP) rising 4% year-over-year to around 3.4 billion. Average revenue per user also saw a significant increase of 41% year-over-year. This metric includes all apps within the Meta family, illustrating total user engagement.
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Apple Breaks New Ground
Apple’s latest earnings report revealed adjusted EPS of $2.40 and sales reaching $124.3 billion. This reflects growth rates of 10% and 4%, respectively, with both figures hitting all-time highs for the company. Services revenue also set a new record.
Historically, Apple’s Services results have regularly surpassed our consensus estimates, as illustrated below.
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However, iPhone sales came in slightly below expectations. They totaled $69.2 billion, marking a 1% decline year-over-year. This was surprising, considering Apple’s new technology initiatives initiated earlier this year.
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Additionally, sales in China saw a decline, dropping to $18.5 billion from $20.8 billion year-over-year. While this slowdown has been understood for some time, it has affected overall performance amid increased competition.
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Despite the challenges, Apple’s installed base of active devices reached an all-time high across all markets, with shares performing well after the announcement—up 27.6% over the past year, closely tracking the S&P 500.
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Conclusion
As the 2024 Q4 earnings season unfolds, it is proving to be fruitful, especially highlighted by strong performances from leading companies.
Key players like Apple AAPL and Meta Platforms META have set record highs, indicating a promising outlook for their operations and the tech sector overall.
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