What to Expect from Meta Platforms's Earnings

Meta Platforms (NASDAQ:META) is set to give its latest quarterly earnings report on Wednesday, 2025-04-30. Here's what investors need to know before the announcement.

Analysts estimate that Meta Platforms will report an earnings per share (EPS) of $5.22.

Anticipation surrounds Meta Platforms's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $1.26, leading to a 1.55% increase in the share price on the subsequent day.

Here's a look at Meta Platforms's past performance and the resulting price change:

Meta Platforms Share Price Analysis

Shares of Meta Platforms were trading at $549.74 as of April 28. Over the last 52-week period, shares are up 25.04%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Meta Platforms

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Meta Platforms.

A total of 47 analyst ratings have been received for Meta Platforms, with the consensus rating being Buy. The average one-year price target stands at $720.28, suggesting a potential 31.02% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Alphabet, Reddit and Pinterest, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Alphabet, with an average 1-year price target of $195.39, suggesting a potential 64.46% downside.
• Analysts currently favor an Outperform trajectory for Reddit, with an average 1-year price target of $177.19, suggesting a potential 67.77% downside.
• Analysts currently favor an Buy trajectory for Pinterest, with an average 1-year price target of $42.18, suggesting a potential 92.33% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Alphabet, Reddit and Pinterest are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Meta Platforms is positioned at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.

About Meta Platforms

Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.

Meta Platforms's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Meta Platforms's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.63% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 43.07%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 12.0%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Meta Platforms's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.83% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Meta Platforms's debt-to-equity ratio is below the industry average at 0.27, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Meta Platforms visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.