What To Expect From Meta’s Q4 Earnings

Adam Hejl /
2022/02/01 5:59 am EST
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Social network operator Meta Platforms (NASDAQ: FB) will be reporting earnings tomorrow after market close. Here's what to look for.

Meta reported revenues of $29 billion, up 35.1% year on year, missing analyst expectations by 1.73%. It was a complicated quarter for the company, with user growth narrowly beating expectations but an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates. The company reported 3.58 billion monthly active users, up 11.5% year on year.

Is Meta buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Meta's revenue to grow 24.1% year on year to $34.8 billion, slowing down from the 33.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $4.04 per share.

Meta Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.89%.

With Meta being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but the segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 15.1% over the last month. Meta is down 7.54% during the same time, and is heading into the earnings with with analyst price target of $403, compared to share price of $313.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.