Social network operator Meta Platforms (NASDAQ:META) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
Meta beat analysts’ revenue expectations last quarter, reporting revenues of $59.89 billion, up 23.8% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ EBITDA estimates. It reported 3.58 billion daily active users, up 6.9% year on year.
Is Meta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Meta’s revenue to grow 31.3% year on year, improving from the 16.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Meta has a history of exceeding Wall Street’s expectations.
Looking at Meta’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.1%, meeting analysts’ expectations, and Netflix reported revenues up 16.2%, topping estimates by 0.5%. Coursera traded down 11.6% following the results while Netflix was also down 9.7%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 17.9% on average over the last month. Meta is up 26.5% during the same time and is heading into earnings with an average analyst price target of $855.11 (compared to the current share price of $678.58).
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