Meta Platforms Poised for Strong Earnings Beat in Upcoming Report

Investors looking for a stock with a proven track record of exceeding earnings estimates should consider Meta Platforms (META). This company, part of the Zacks Internet – Software industry, is well-positioned to continue its trend of positive earnings surprises.

Meta Platforms has consistently outperformed earnings expectations, particularly in its last two reports, averaging an impressive surprise of 18.12% over this period.

Recent Earnings Performance

In the most recent quarter, Meta reported earnings of $8.02 per share, surpassing the Zacks Consensus Estimate of $6.68 per share by 20.06%. Previously, the company was expected to earn $5.19 per share but instead delivered actual earnings of $6.03 per share, resulting in a 16.18% surprise.

Positive Earnings Outlook

Given its recent performance, earnings estimates for Meta have been revised upward. The Zacks earnings ESP (Expected Surprise Prediction) for Meta is currently positive, which suggests a strong likelihood of another earnings beat, especially in tandem with the company’s solid Zacks Rank.

Research indicates that stocks displaying a positive earnings ESP alongside a Zacks Rank #3 (Hold) or higher achieve positive surprises nearly 70% of the time. This suggests that out of ten stocks with this profile, as many as seven could outperform expectations.

The Zacks earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate represents more current insights from analysts revising their forecasts just prior to an earnings release, potentially leading to more accurate predictions.

Currently, Meta Platforms possesses an earnings ESP of +2.52%. This indicates that analysts are optimistic about the company’s future earnings. Coupled with a Zacks Rank #3 (Hold), these metrics suggest another earnings beat could be on the horizon. The next earnings report is anticipated to be released on April 30, 2025.

Understanding Earnings ESP and Its Implications

It is important to note that a negative earnings ESP does not guarantee an earnings miss but does diminish the predictive accuracy of this metric. Many companies that beat the consensus EPS estimate may also see their stock prices rise for other reasons, while some may remain stable despite missing projections.

Therefore, checking a company’s earnings ESP ahead of quarterly releases is crucial for maximizing investment success. Utilize our earnings ESP Filter to identify the best stocks to buy or sell before their earnings reports.

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Meta Platforms, Inc. (META): Free Stock Analysis report

This article originally published on Zacks Investment Research (zacks.com).

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.