Meta Platforms (META) Expectations: Q4 Earnings Analysis Anticipating Meta Platforms (META) Q4 Earnings: A Deeper Dive

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Meta Platforms (META) is poised to reveal its fourth-quarter 2023 results on Feb 1. The company has projected total revenues of $36.5-$40 billion for the quarter, with a projected 2% uptick in year-over-year top-line growth owing to favorable forex.

Analysts expect fourth-quarter revenues to reach $38.93 billion, signifying a 21.02% surge from the preceding year. The consensus for earnings stands at $4.84 per share, indicating a 61.33% leap from the year-ago period.

What to Expect?

Meta’s fourth-quarter performance is presumed to have benefited from the expansion of its user base, notably reaching more than 3.049 billion daily active users. Furthermore, the increasing adoption of reels and sustained engagement on Instagram, WhatsApp, Messenger, and Facebook is expected to drive growth.

The effective utilization of AI to keep users engaged and the growth of Reels, contributing to a 40% surge in time spent on Instagram, are other facets attributing to Meta’s success. Additionally, continued user growth across regions, especially Asia Pacific, is playing a pivotal role in strengthening Meta’s engagement levels.

Notably, the challenging macroeconomic environment and high inflation are probable challenges that Meta may have faced, potentially impacting ad spending budgets and subsequently ad revenues for the quarter.

Earnings Predictions

Based on the Zacks model, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increase the likelihood of an earnings beat. As per this criterion, Meta Platforms (META) is favorably placed, with an Earnings ESP of +0.51% and a Zacks Rank #2.

Other Considerations

When examining other stocks, companies like Shopify, Twilio, and Bill Holdings also exhibit a promising combination of factors for potential earnings outperformance in their forthcoming releases.

All eyes are set on Meta Platforms’ earnings for insights into the company’s stride in the midst of a changing economic landscape and its ability to continue fostering user engagement in a competitive market.

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Source: Zacks Investment Research

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