Meta (META) To Report Earnings Tomorrow: Here Is What To Expect

Social network operator Meta Platforms (NASDAQ:META) will be reporting results tomorrow after market hours. Here’s what you need to know.

Meta beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $48.39 billion, up 20.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations significantly. It reported 3.35 billion daily active users, up 5% year on year.

Is Meta a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Meta’s revenue to grow 13.4% year on year to $41.35 billion, slowing from the 27.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.21 per share.

Analysts covering the company have generally 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, beating revenue estimates every single time over the past two years by 2.2% on average.

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. Alphabet delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 1.2%, and Coursera reported revenues up 6.1%, topping estimates by 2.3%. Alphabet traded up 1.8% following the results while Coursera was also up 14.1%.

Read our full analysis of Alphabet’s results here and Coursera’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Meta is down 4.7% during the same time and is heading into earnings with an average analyst price target of $710.33 (compared to the current share price of $549.50).

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