Meta Platforms Surpasses Earnings Expectations in Latest Quarter
Meta Platforms (META) recently released its quarterly earnings, reporting $6.03 per share, which significantly exceeded the Zacks Consensus Estimate of $5.19 per share. This performance marks an increase from earnings of $4.39 per share during the same period last year, with all figures adjusted for non-recurring items.
This quarterly report showcases an earnings surprise of 16.18%. A quarter ago, analysts predicted that the social media giant would earn around $4.70 per share, but Meta reported a higher actual profit of $5.16, resulting in a surprise of 9.79%.
Over the past four quarters, Meta has consistently beaten consensus earnings-per-share (EPS) estimates.
For the quarter ending September 2024, Meta Platforms achieved revenues of $40.59 billion, surpassing the Zacks Consensus Estimate by 0.95%. This is a notable increase from revenues of $34.15 billion from a year earlier. In fact, the company has exceeded revenue expectations in every quarter over the last year.
The stock’s future movement will largely hinge on insights provided during the earnings call, as these will shape expectations for the coming quarters.
Since the start of the year, Meta Platforms’ shares have risen approximately 67.6%, outpacing the S&P 500’s increase of 22.3%.
What Lies Ahead for Meta Platforms?
As Meta continues to outperform the market in 2024, investors are left pondering the stock’s trajectory moving forward.
One effective way to understand potential market movements involves examining the company’s earnings outlook. This incorporates both the current earnings expectations and any recent changes in these estimates.
Studies show a strong link between stock price movements and trends in earnings estimate revisions. Investors have the option to track these revisions or utilize a reliable ranking system, such as the Zacks Rank, which has a proven record of success in predicting stock performance based on these metrics.
Leading up to this earnings report, revisions for Meta Platforms were positive. Although the impact of the latest report could modify these estimates, the stock currently holds a Zacks Rank #2 (Buy), indicating it is likely to outperform the market in the near future. A full list of Zacks #1 Rank (Strong Buy) stocks can be found here.
It will be intriguing to monitor how estimates for upcoming quarters and the current fiscal year evolve. Currently, analysts expect an EPS of $6.33 and revenues of $46.18 billion in the next quarter, with a fiscal year forecast of $21.47 EPS on revenues of $161.95 billion.
Investors should also consider that the broader industry outlook can significantly influence stock performance. The Internet – Software sector currently ranks in the top 33% of over 250 Zacks industries. Historical data indicates that stocks in the top half of the Zacks rankings tend to outperform those in the bottom half by more than a factor of two.
In comparison, SurgePays, Inc. (SURG), another firm in the same industry, has yet to announce its results for the quarter ending September 2024. Analysts anticipate a quarterly loss of $0.22 per share for SurgePays, a drastic decline compared to the previous year, which reflects a 144.9% year-over-year change. Revenue projections for SurgePays stand at $8.64 million, marking a 74.7% drop from the same quarter last year.
Should You Consider Investing in Meta Platforms, Inc. (META)?
If you are contemplating an investment in Meta Platforms, Inc. (META), you might want to explore Zacks Investment Research for insights on promising stocks for the upcoming month.
Zacks Investment Research has been providing investors with analytical tools and research since 1978. The Zacks Rank stock-rating system has significantly outperformed the S&P 500, showcasing an impressive average gain of +24.08% per year from January 1, 1988, to May 6, 2024.
For the latest investment recommendations from Zacks Investment Research, you can access a report featuring 5 Stocks Set to Double.
Meta Platforms, Inc. (META) : Free Stock Analysis Report
SurgePays, Inc. (SURG) : Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.