Headquartered in Menlo Park, California, Meta Platforms, Inc. (META) is a global leader in technology and social connectivity, driving innovation through its digital platforms and immersive experiences. With a market cap of $1.5 trillion, Meta operates across various segments, including social media, virtual reality, and digital advertising, providing cutting-edge solutions that shape how people connect and interact online. The company is set to release its Q4 earnings after the market closes on Wednesday, Jan. 29.
Ahead of the event, analysts expect Meta to report a profit of $6.76 per share, up 26.8% from $5.33 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. Its EPS of $6.03 for the last reported quarter surpassed the consensus estimates by 16.2%. Meta's earnings beat was driven by strong ad revenue growth from AI tools, but lower user numbers and rising infrastructure costs raised concerns.
Analysts expect Meta’s EPS to climb 52.5% to $22.68 in fiscal 2024, up from $14.87 in 2023. In fiscal 2025, EPS is projected to increase by 11.2% annually to $25.21.
Shares of Meta have gained 62.4% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 22% rise and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 29.9% gains over the same period.
On Oct. 30, META shares closed slightly lower after the company reported Q3 results. The company reported revenue of $40.59 billion, meeting analyst expectations with an 18.9% year-over-year increase. Additionally, Meta's EBITDA for the quarter was $25.63 billion, beating expectations by 6.5%. For Q4 CY2024, Meta guided revenue of $46.5 billion, in line with analysts' forecasts. The company saw improvements in profitability, with the operating margin increasing to 42.7% from 40.3% last year and the EBITDA margin rising to 63.1%. The free cash flow margin also grew to 38.2% from 28.7% in the previous quarter.
Analysts’ consensus opinion on META stock is bullish, with a “Strong Buy” rating overall. Out of 51 analysts covering the stock, 43 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, four give a “Hold,” and recommend two “Strong Sell.” META’s average analyst price target is $667.58, indicating a potential upside of 9.7% from the current levels.
