Meta Platforms Reports Strong Quarterly Earnings, Surpassing Expectations

Meta Platforms (META) released its quarterly earnings, reporting $6.43 per share. This figure exceeds the Zacks Consensus Estimate of $5.22 per share and shows significant growth from the $4.71 per share reported a year ago. These numbers are adjusted for non-recurring items.

The latest report indicates an earnings surprise of 23.18%. In the previous quarter, analysts expected earnings of $6.68, but Meta delivered $8.02 per share, resulting in a surprise of 20.06%.

In the past four quarters, Meta Platforms has consistently outperformed consensus EPS estimates.

For the quarter ending in March 2025, Meta generated revenues of $42.31 billion, which surpasses the Zacks Consensus Estimate by 2.61%. In comparison, revenues were $36.46 billion in the previous year. The company has exceeded consensus revenue estimates in four consecutive quarters.

The sustainability of the stock’s immediate price movement, informed by the latest earnings data and future earnings forecasts, largely hinges on management’s comments during the earnings call.

Since the start of the year, Meta Platforms shares have declined by approximately 5.3%, slightly outperforming the S&P 500, which has dipped by 5.5%.

What Lies Ahead for Meta Platforms?

While Meta has performed well compared to the market this year, investors are left wondering about the company’s future direction.

The earnings outlook provides insights into this question. This outlook not only includes current consensus earnings expectations for upcoming quarters but also sheds light on recent changes to those expectations.

Research suggests a strong correlation between near-term stock movements and earnings estimate revisions. Investors can monitor these revisions independently or utilize a rating system like the Zacks Rank, known for effectively tracking earnings estimate trends.

As of now, the estimate revisions trend for Meta Platforms is mixed. Although the direction of these revisions may shift following the recent earnings report, the current standing translates to a Zacks Rank of #3 (Hold) for the stock. This suggests that the shares are likely to perform in line with the market in the short term.

Observers will watch closely how estimates for upcoming quarters and the current fiscal year evolve in the days ahead. Currently, the consensus EPS estimate for the next quarter stands at $5.49, with projected revenues of $43.33 billion. For the current fiscal year, the estimate is $24.04 per share with revenues expected to reach $183.9 billion.

It’s also important to consider the industry’s outlook, which can significantly affect stock performance. The Zacks Industry Rank places Internet – Software in the bottom 44% of over 250 Zacks industries. Historically, industries in the top 50% outperform those in the bottom 50% by a margin greater than two to one.

Additionally, Consensus Cloud Solutions, Inc. (CCSI), another player in the same industry, has yet to report results for the quarter ending in March 2025. The upcoming results are anticipated on May 7.

CCSI is expected to post quarterly earnings of $1.30 per share, representing a year-over-year decline of 16.1%. The EPS estimate for this quarter has remained stable over the past 30 days. The company’s forecasted revenues stand at $87.62 million, marking a slight decrease of 0.6% from the previous year.

Should You Invest in Meta Platforms, Inc. (META)?

Investors interested in Meta Platforms, Inc. (META) should consider current market conditions before making investment decisions.

The current earnings momentum and market position merit careful observation. With robust performance against earnings expectations thus far, Meta’s evolution will continue to be pivotal in shaping investor sentiment.

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