Social network operator Meta Platforms (NASDAQ: META) will be reporting earnings this Wednesday after market close. Here’s what to expect.
Meta beat analysts’ revenue expectations last quarter, reporting revenues of $56.31 billion, up 33.1% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter meeting analysts’ expectations. It reported 3.56 billion daily active users, up 3.8% 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 26.7% year on year, improving from the 21.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 2.2%, and Netflix reported revenues up 13.4%, in line with consensus estimates. Alphabet traded down 7.1% following the results while Netflix was also down 7.3%.
Read our full analysis of Alphabet’s results here and Netflix’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Meta is up 5.8% during the same time and is heading into earnings with an average analyst price target of $824.68 (compared to the current share price of $595.24).
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