Meta Platforms Expected to Report Strong Earnings Growth This Quarter

The upcoming report from Meta Platforms (META) is anticipated to show quarterly earnings of $5.21 per share, marking a 10.6% increase from the same period last year. Analysts project revenues of $41.22 billion, reflecting a year-over-year growth of 13.1%.

Revised Earnings Projections Signal Changes

Over the past month, the consensus EPS estimate has been revised downward by 7.3%, indicating a shift in analysts’ expectations. Such revisions are crucial as they can influence investor sentiment and behavior towards the stock.

Understanding Analysts’ Forecasts

While consensus earnings and revenue estimates are widely used for assessing a company’s performance, analyzing specific metrics can provide deeper insights into future performance. With that in mind, let’s explore the projected metrics for Meta Platforms as reported by analysts on Wall Street.

Key Revenue Projections from Analysts

• The estimate for ‘Revenue- Reality Labs’ stands at $490.10 million, which suggests an increase of 11.4% year over year.
• ‘Revenue- Family of Apps (FoA)’ is anticipated to reach $40.87 billion, indicating a year-over-year rise of 13.5%.
• ‘Revenue- Advertising’ is projected to hit $40.44 billion, also reflecting a 13.5% gain compared to last year.
• ‘Revenue- Other’ is expected to come in at $462.52 million, signaling a robust increase of 21.7% year over year.
• For ‘Advertising Revenue- US & Canada’, analysts anticipate $17.93 billion, which represents a 16% increase from the prior year.
• ‘Advertising Revenue- Europe’ is expected at $9.51 billion, a 14.2% rise year over year.
• For ‘Geographical Revenue by User- Rest of World’, the estimate stands at $5.38 billion, reflecting a 15.2% increase year over year.
• ‘Geographical Revenue by User- US & Canada’ is projected to be $17.94 billion, indicating a year-over-year change of 13.4%.
• Analysts predict ‘Advertising Revenue- Rest of the World’ will be around $5.15 billion, a rise of 13.9% from the same quarter last year.
• The consensus for ‘Family daily active people (DAP)’ is expected to reach $3.38 billion, up from $3.24 billion reported in the same quarter last year.
• ‘Headcount’ is forecasted to be 74,962, a significant increase from the year-ago value of 69,329.
• Analysts estimate that ‘Average Revenue Per Person (ARPP)’ will be $12.14, compared to $11.20 from the same quarter last year.

Over the last month, shares of Meta Platforms have declined by 11.5% in comparison to the Zacks S&P 500 composite’s decline of 4.8%. Currently, META holds a Zacks Rank of #3 (Hold), suggesting it may perform in line with the overall market in the near term.

For those interested, you can view more key metrics for Meta Platforms here>>>

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