Proactive Investors - Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) is expected to report impressive growth in both its revenues and profits for the fourth quarter, with Wall Street analysts expecting the company to report an almost 180% jump in earnings per share and a 20% increase in revenue.
The Facebook (NASDAQ:META), Instagram and WhatsApp parent is set to hand down its fourth quarter and full year 2023 financial results after the stock market closes on February 1, 2024.
Wall Street analysts, on average expect Meta to report revenue of $39.93 billion, compared to $32.17 billion in the year-ago quarter and earnings per share (EPS) of $4.83, up from $1.76.
Meta has guided quarterly revenue in the range of $36.5 billion to $40 billion.
For the full-year 2023, the consensus expectation is for EPS of $14.44 on revenue of $133.78 billion. For fiscal 2022, Meta reported EPS of $8.59 on revenue of $116.6 billion.
Capital.com analysts attributed Meta’s expected robust earnings growth to strong advertising revenues across its application suite of products.
“The solid topline growth comes amidst resilient consumer activity in several of Meta’s key markets,” the analysts wrote.
“The multi-year decline in ad pricing is expected to slow down, with revenue growth coming despite what is projected to be only modest increases in daily active users and monthly active users of approximately 3%.”
The Capital.com analysts noted that Meta’s capital expenditures are expected to remain “under control” after surging as the company pivoted its strategy to focus on the Metaverse.
Ahead of Meta’s results, analysts at Jefferies raised their price target on the stock to US$455 from US$425.
Shares of Meta traded at US$403 late morning on Tuesday.
“Our recent digital ad checks have been the most positive we’ve seen in several years, giving us conviction in 4Q revenue at the high end of guidance and 1Q revenue guidance above the Street at the high end,” the analysts wrote.
They wrote that they continued to be encouraged by Meta’s ability to sustain double-digit revenue growth on the combination of higher engagement from AI investments and increasing advertiser return on investment and efficiency.
“Despite the 194% return in 2023, the stock looks inexpensive and we believe it can grind higher with accelerating revenue growth and positive EPS revisions,” the analysts concluded.