What To Expect From Meta’s (META) Q4 Earnings

Anthony Lee /
2024/01/31 2:01 am EST

Social network operator Meta Platforms (NASDAQ:META) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter Meta reported revenues of $34.15 billion, up 23.2% year on year, beating analyst revenue expectations by 2%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter. On the other hand, Meta beat analysts' revenue and EPS estimates during the quarter, driven by better-than-expected monthly active user growth. The company reported 3.96 billion monthly active users, up 6.7% 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 21.8% year on year to $39.17 billion, improving on the 4.5% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.97 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 fifteen upward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Meta's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Netflix delivered top-line growth of 12.5% year on year, beating analyst estimates by 1.4% and Match Group reported revenues up 10.2% year on year, exceeding estimates by 0.6%. Netflix traded up 4.4% on the results, and Match was flat on the results.

Read our full analysis of Netflix's results here and Match Group's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks down on average 0.7% over the last month. Meta is up 13.2% during the same time, and is heading into the earnings with analyst price target of $393.5, compared to share price of $392.

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.

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