Social network operator Meta Platforms (NASDAQ:META) will be reporting results tomorrow after market close. Here’s what you need to know.
Meta met analysts’ revenue expectations last quarter, reporting revenues of $40.59 billion, up 18.9% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 3.29 billion daily active users, up 4.8% year on year.
Is Meta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Meta’s revenue to grow 17.2% year on year to $46.99 billion, slowing from the 24.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.74 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Meta has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2% on average.
Looking at Meta’s peers in the consumer internet segment, only Netflix has reported results so far. It beat analysts’ revenue estimates by 1.4%, delivering year-on-year sales growth of 16%. The stock traded up 9.4% on the results.
Read our full analysis of Netflix’s earnings results here.There has been positive sentiment among investors in the consumer internet segment, with share prices up 5.3% on average over the last month. Meta is up 12.1% during the same time and is heading into earnings with an average analyst price target of $670.75 (compared to the current share price of $664.30).
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