Meta (META) Q3 Earnings: What To Expect

Adam Hejl /
2022/10/25 2:59 am EDT

Social network operator Meta Platforms (NASDAQ: META) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter Meta reported revenues of $28.8 billion, down 0.87% year on year, missing analyst expectations by 0.44%. It was a weak quarter for the company, with slow revenue growth and an underwhelming revenue guidance for the next quarter. The company reported 3.65 billion monthly active users, up 3.98% 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 5.44% year on year to $27.4 billion, a significant deceleration on the 35.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.89 per share.

Meta Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing fifteen downward 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, only Snap has so far reported results, delivering top-line growth of 5.71% year on year, missing analyst estimates by 0.92%. The stock was down 21.5% on the results. Read our full analysis of Snap's earnings results here.

There has been a stampede out of high valuation technology stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 2.42% over the last month. Meta is down 4.81% during the same time, and is heading into the earnings with analyst price target of $212.60, compared to share price of $129.80.

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.