The upcoming report from Meta Platforms (META) is expected to reveal quarterly earnings of $5.21 per share, indicating an increase of 10.6% compared to the year-ago period. Analysts forecast revenues of $41.22 billion, representing an increase of 13.1% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 7.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
With that in mind, let's delve into the average projections of some Meta Platforms metrics that are commonly tracked and projected by analysts on Wall Street.
The consensus estimate for 'Revenue- Reality Labs' stands at $490.10 million. The estimate suggests a change of +11.4% year over year.
Analysts' assessment points toward 'Revenue- Family of Apps (FoA)' reaching $40.87 billion. The estimate indicates a year-over-year change of +13.5%.
It is projected by analysts that the 'Revenue- Advertising' will reach $40.44 billion. The estimate suggests a change of +13.5% year over year.
Analysts expect 'Revenue- Other' to come in at $462.52 million. The estimate indicates a year-over-year change of +21.7%.
The combined assessment of analysts suggests that 'Advertising Revenue- US & Canada' will likely reach $17.93 billion. The estimate points to a change of +16% from the year-ago quarter.
Analysts predict that the 'Advertising Revenue- Europe' will reach $9.51 billion. The estimate indicates a year-over-year change of +14.2%.
The collective assessment of analysts points to an estimated 'Geographical Revenue by User- Rest of World' of $5.38 billion. The estimate points to a change of +15.2% from the year-ago quarter.
Based on the collective assessment of analysts, 'Geographical Revenue by User- US & Canada' should arrive at $17.94 billion. The estimate suggests a change of +13.4% year over year.
According to the collective judgment of analysts, 'Advertising Revenue- Rest of the World' should come in at $5.15 billion. The estimate points to a change of +13.9% from the year-ago quarter.
The consensus among analysts is that 'Family daily active people (DAP)' will reach $3.38 billion. Compared to the present estimate, the company reported $3.24 billion in the same quarter last year.
Analysts forecast 'Headcount' to reach 74,962. The estimate compares to the year-ago value of 69,329.
The average prediction of analysts places 'Average Revenue Per Person (ARPP)' at $12.14. Compared to the present estimate, the company reported $11.20 in the same quarter last year.
View all Key Company Metrics for Meta Platforms here>>>
Over the past month, shares of Meta Platforms have returned -11.5% versus the Zacks S&P 500 composite's -4.8% change. Currently, META carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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