Meta (META) Q4 Earnings: What To Expect

Jabin Bastian /
2023/01/31 4:25 am EST
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Social network operator Meta Platforms (NASDAQ: META) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Meta reported revenues of $27.7 billion, down 4.46% year on year, beating analyst revenue expectations by 1.14%. It was a weak quarter for the company, with declining revenue and an underwhelming revenue guidance for the next quarter. The company reported 3.71 billion monthly active users, up 3.63% 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 5.88% year on year to $31.6 billion, a deceleration on the 19.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.23 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.

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 there has been positive sentiment among investors in the segment, with the stocks up on average 31% over the last month. Meta is up 17.4% during the same time, and is heading into the earnings with analyst price target of $154.39, compared to share price of $146.56.

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.