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Meta Q4 Earnings: Key Metrics to Watch

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It’s a highly critical week for earnings, with several mega-cap technology companies slated to reveal quarterly results. The strength of these mega-cap names has been admired by all, with many expecting positive results to keep overall market momentum flowing.

Beloved Meta Platforms (META - Free Report) will reveal quarterly results on February 1st after the market’s close. The company has been on a solid earnings streak as of late, exceeding our consensus earnings and revenue expectations in four consecutive quarters.

Shares got a nice boost following its latest set of results, sparking a strong rally.

How do expectations stack up heading into the release? Let’s take a quick look at headline estimates and a few key other metrics to keep an eye on within the release.

Headline Expectations

Analysts have taken a bullish stance on the company’s outlook, with the $4.83 Zacks Consensus EPS estimate being revised nearly 3% higher since last November. The value suggests a sizable 61% improvement from the year-ago period.

Zacks Investment Research
Image Source: Zacks Investment Research

Top line expectations have moved similarly, as the $38.9 billion Zacks Consensus Sales estimate is up a modest 1% over the same time frame. The tech titan is forecasted to post sizable revenue growth as well, with the value indicating a 21% year-over-year climb.

Zacks Investment Research
Image Source: Zacks Investment Research

Key Metrics

The company generates the bulk of its revenues through advertising, a metric that META has consistently positively surprised on as of late. For the quarter to be reported, the Zacks Consensus estimate for advertising net sales stands at $37.8 billion, showing considerable growth from last year’s $31.3 billion print.

Zacks Investment Research
Image Source: Zacks Investment Research

Of course, Daily Active Users (DAUs) is also a key metric for META, providing a deeper insight into consumers’ activity across its platforms. For the release, the Zacks Consensus Estimate for DAUs stands at 2.1 billion, modestly above the 2.0 billion mark reported in the same period last year.

META has also consistently positively surprised on this metric, as shown below.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

It’s a rapid week of earnings, with the likes of many mega-cap technology companies slated to report.

Included in this bunch is none other than Meta Platforms (META - Free Report) . Analysts have shown positivity for the release, raising earnings and revenue expectations over the last several months, which reflect solid year-over-year growth.

Concerning key metrics, Advertising revenue and Daily Active Users (DAUs) will get a lot of focus, providing us with deeper insight into the company’s platform activity.


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