Meta Platforms (NASDAQ:META) saw its stock rise as much as 16% in pre-market Friday following the announcement of strong fourth-quarter earnings and the introduction of a new buyback program.
The internet company reported a Q4 EPS of $5.33, easily surpassing the analyst estimate of $4.96. Revenue jumped 25% year-over-year to $40.11 billion, again topping the expected $39.02 billion.
"We had a good quarter as our community and business continue to grow," said Mark Zuckerberg, Meta founder and CEO. "We've made a lot of progress on our vision for advancing AI and the metaverse."
Across Meta's family of apps, the company reported 3.19 billion daily active people (DAP) on average for December 2023, an increase of 8% YoY. Family monthly active people (MAP) was 3.98 billion as of December 31, up 6% annually.
Looking forward, Meta Platforms has provided guidance for the first quarter of 2024, projecting revenue in the range of $34.5 to $37 billion. This forecast exceeds the consensus estimate of $33.83 billion, signaling confidence in the company's continued growth.
Meta reaffirmed its forecast for the full-year 2024 total expenses being in the range of $94 billion to $99 billion.
Moreover, Meta Platforms announced a quarterly dividend of $0.50 per share, or $2 annualized, with a payment date of March 26, offering an annual yield of 0.5% on the dividend.
In terms of share repurchases, Meta Platforms disclosed that it had bought back $6.32 billion of its Class A common stock in the fourth quarter and $20.03 billion over the full year of 2023.
As of December 31, 2023, the company had $30.93 billion available for further repurchases.
The stock received another boost on the news that the Board approved a significant increase in the share repurchase authorization, adding an additional $50 billion to the program.
Wall Street analysts rushed to adjust their estimates and numbers on Meta after a blockbuster earnings report.
Analysts from Deutsche Bank noted a notable shift in tone from Mark Zuckerberg, as Meta's AI initiatives appear to be driving results, and the company is now going on the offensive by hiring more technical roles as Meta places a growing emphasis on distributing AI in a meaningful way across its product portfolio.
Analysts from Bernstein likened Meta to 'Patek Philippe of Internet,' comparing the social media giant with the renowned Swiss luxury watch and clock manufacturer.
"Revenue growth and guidance likely put to rest the biggest hangup of owning Meta into decelerating growth, but we were more impressed with the long-term vision laid out," analysts commented.
"Perhaps just like the famed Patek slogan, ‘you never actually own Meta’s stock, you merely look after it for the next generation’," they added.