Meta Platforms Poised for Another Earnings Victory
Investors seeking a stock known for consistently surpassing earnings estimates should take a closer look at Meta Platforms (META). This key player in the Zacks Internet – Software industry is well-positioned for potential earnings success in its upcoming report.
Strong Earnings Track Record
Meta Platforms has demonstrated a reliable ability to exceed earnings forecasts, particularly highlighted by its recent quarterly performances. With an impressive average surprise of 12.99% over the past two quarters, the company is set for more favorable outcomes.
Recent Performance Highlights
In the last reported quarter, Meta Platforms delivered earnings of $6.03 per share, significantly outperforming the Zacks Consensus Estimate of $5.19 per share, representing a surprise of 16.18%. In the preceding quarter, the company was expected to earn $4.70 per share but achieved $5.16 per share, resulting in a surprise of 9.79%.
Positive Outlook with Earnings ESP
Given this strong earnings history, analysts have begun adjusting their forecasts upward for Meta Platforms. Currently, the company has a positive Zacks Earnings ESP (Expected Surprise Prediction), signaling the potential for another earnings beat. The combination of a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better leads to positive surprises nearly 70% of the time. Essentially, when analyzing 10 stocks with this profile, around seven are likely to outperform consensus estimates.
Understanding the Earnings ESP Metric
The Zacks Earnings ESP evaluates the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter. This measure indicates that analysts updating their estimates close to the earnings release may possess the most accurate information. Notably, Meta Platforms holds an Earnings ESP of +3.73%, suggesting that sentiment regarding its near-term earnings looks optimistic. Coupled with its Zacks Rank of #2 (Buy), there is a strong possibility of another earnings triumph. The next earnings report for the company is anticipated on January 29, 2025.
Caveats Regarding Earnings ESP Observations
It’s essential for investors to recognize that a negative Earnings ESP reading does not automatically predict an earnings miss; however, it may lessen the probability of an earnings surprise occurring. Many companies might beat consensus EPS estimates without seeing their stock prices rise significantly, while others could maintain their values even with missed estimates. Therefore, it is crucial to check a company’s Earnings ESP before quarterly announcements to improve the chances of making informed decisions. Utilizing the Earnings ESP Filter can help identify prime stocks to trade before their financial disclosures.
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Meta Platforms, Inc. (META): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
