Meta Platforms Q4 Earnings Forecast to Surge on Solid Ad Revenues
By Kyle Rodda | Published on January 31, 2024
Overview
Meta Platforms (META) is set to announce its Q4 earnings after the market closes on February 1, 2024. Analysts are optimistic about the company's performance, particularly due to strong advertising revenues across its suite of products.
Earnings Expectations
According to Bloomberg data, Meta is expected to report a significant earnings-per-share (EPS) growth of 179%, reaching $4.90, supported by a 21% increase in revenue to $38.1 billion. This growth is attributed to resilient consumer activity in key markets, despite a projected modest increase of about 3% in daily and monthly active users.
Capital Expenditures and Operating Margins
Analysts predict that Meta's capital expenditures will remain controlled following a surge due to the company's strategic pivot towards the Metaverse. Operating margins for Q1 are expected to be higher than the previous year and consistent with the last quarter.
Analyst Sentiment
The consensus among analysts is bullish, with 65 recommending a buy, 10 suggesting a hold, and 3 advising a sell. The average price target for Meta shares is set at $402.16, slightly above current market valuations.
Technical Analysis
From a technical perspective, Meta's stock has reached all-time highs, indicating a bullish trend. The weekly Relative Strength Index (RSI) is in overbought territory but still shows positive momentum. Analysts suggest that a consolidation above previous highs would confirm a sustained uptrend. Key support levels are identified at approximately $360 and $330, with the latter aligning with the 20-week moving average.