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Meta Platforms (META) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Analysts on Wall Street project that Meta Platforms (META - Free Report) will announce quarterly earnings of $6.60 per share in its forthcoming report, representing an increase of 9.5% year over year. Revenues are projected to reach $49.43 billion, increasing 21.8% from the same quarter last year.

Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Given this perspective, it's time to examine the average forecasts of specific Meta Platforms metrics that are routinely monitored and predicted by Wall Street analysts.

The consensus estimate for 'Revenue- Reality Labs' stands at $338.99 million. The estimate points to a change of +25.6% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Family of Apps (FoA)' of $49.05 billion. The estimate suggests a change of +21.7% year over year.

Based on the collective assessment of analysts, 'Revenue- Advertising' should arrive at $48.50 billion. The estimate points to a change of +21.6% from the year-ago quarter.

Analysts forecast 'Revenue- Other' to reach $584.35 million. The estimate suggests a change of +34.6% year over year.

The combined assessment of analysts suggests that 'Advertising Revenue- US & Canada' will likely reach $21.70 billion. The estimate suggests a change of +24.8% year over year.

Analysts' assessment points toward 'Advertising Revenue- Europe' reaching $11.65 billion. The estimate suggests a change of +24.5% year over year.

It is projected by analysts that the 'Geographical Revenue by User- Rest of World' will reach $6.64 billion. The estimate points to a change of +26% from the year-ago quarter.

The consensus among analysts is that 'Geographical Revenue by User- US & Canada' will reach $21.53 billion. The estimate points to a change of +22.3% from the year-ago quarter.

Analysts expect 'Advertising Revenue- Rest of the World' to come in at $6.37 billion. The estimate indicates a year-over-year change of +25.1%.

According to the collective judgment of analysts, 'Family daily active people (DAP)' should come in at $3.49 billion. Compared to the present estimate, the company reported $3.29 billion in the same quarter last year.

Analysts predict that the 'Headcount' will reach 76,888 . The estimate is in contrast to the year-ago figure of 72,404 .

The average prediction of analysts places 'Average Revenue Per Person (ARPP)' at $14.08 . The estimate is in contrast to the year-ago figure of $12.29 .

View all Key Company Metrics for Meta Platforms here>>>

Meta Platforms shares have witnessed a change of -2% in the past month, in contrast to the Zacks S&P 500 composite's +1.3% move. With a Zacks Rank #1 (Strong Buy), META is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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