Yahoo Finance Meta (META) Q2 Earnings Report Preview: What To Look For
Social network operator Meta Platforms (NASDAQ:META) will be reporting earnings tomorrow after the bell. Here's what to look for.
Meta met analysts' revenue expectations last quarter, reporting revenues of $36.46 billion, up 27.3% year on year. It was a mixed quarter for the company: Meta delivered solid revenue, operating profit, and EPS growth, which beat analysts' estimates. That was driven by more daily active users than expected and 6% year-on-year growth in average ad prices. On the other hand, its revenue guidance for next quarter missed analysts' expectations and it took up its forecasted operating expenses and capital expenditures for the full 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 19.7% year on year to $38.31 billion, improving from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.78 per share.
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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.
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. Netflix delivered year-on-year revenue growth of 16.8%, meeting analysts' expectations, and Coursera reported revenues up 10.8%, topping estimates by 3.5%. Netflix traded down 1.5% following the results while Coursera was up 45.1%.
Read our full analysis of Netflix's results here and Coursera's results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 2% on average over the last month. Meta is down 8.1% during the same time and is heading into earnings with an average analyst price target of $532.7 (compared to the current share price of $464).
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