Meta (META) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2023/04/25 3:25 am EDT
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Social network operator Meta Platforms (NASDAQ: META) will be reporting results tomorrow after the bell. Here's what you need to know.

Last quarter Meta reported revenues of $32.2 billion, down 4.47% year on year, beating analyst revenue expectations by 1.5%. It was a weaker quarter for the company, with slow revenue growth. The company reported 3.74 billion monthly active users, up 4.18% 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 decline 0.9% year on year to $27.7 billion, a deceleration on the 6.64% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.95 per share.

Meta Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing eight upwards revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Meta's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Skillz's revenues decreased 56.9% year on year, missing analyst estimates by 3.79% and Netflix reported revenues up 3.73% year on year, missing analyst estimates by 0.2%. Skillz traded down 4.06% on the results, Netflix was down 5.95%. Read our full analysis of Skillz's results here and Netflix's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 0.66% over the last month. Meta is up 4.85% during the same time, and is heading into the earnings with analyst price target of $228.9, compared to share price of $212.68.

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.