As one of many headline names of this week’s earnings lineup, Meta Platforms META was capable of impressively exceed its fourth-quarter expectations on Wednesday.
Correlating with stellar positive factors over the previous few years, Meta has now surpassed earnings expectations for 9 consecutive quarters and buyers could also be questioning if it’s time to purchase inventory within the social media large after its newest EPS shock.
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Meta’s Sturdy This fall Outcomes
Primarily derived from promoting income, Meta’s This fall gross sales of $48.38 billion topped estimates of $46.96 billion whereas stretching 20% from $40.11 billion a 12 months in the past.
Advert impressions throughout all apps elevated by 6% and 11% year-over-year for the fourth quarter and full 12 months 2024, respectively. Moreover, common value per advert elevated by 14% and 10% YoY. This got here on a 5% YoY enhance in person engagement with Meta’s DAP (Every day Energetic Individuals) rising to a median of three.35 billion.
Meta’s profitability elevated to $20.83 billion or $8.02 per share, a 50% enhance from EPS of $5.33 within the prior 12 months quarter on web earnings of $14.01 billion. Surpassing the Zacks This fall EPS Consensus of $6.68 by 20%, Meta’s shock revenue was attributed to AI-driven promoting focusing on.
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Meta’s Full Yr Outcomes
Total, Meta’s complete gross sales elevated 22% in fiscal 2024 to $164.5 billion versus $134.9 billion in 2023. Annual earnings got here in at $62.36 billion or $23.86 per share, a 60% spike from EPS of $14.87 in 2023 on web earnings of $39.09 billion.
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Meta’s Income Steering
Whereas Meta didn’t present a full-year top-line information, the corporate expects Q1 2025 income to be between $39.5-$41.8 billion with the present Zacks Consensus at $41.37 billion or 13% development (Present Qtr under).
Based mostly on Zacks estimates, Meta’s complete gross sales are projected to extend one other 12% in FY26. Zacks projections name for six% EPS development in FY25 with Meta’s backside line projected to extend one other 11% subsequent 12 months to $28.37 per share.
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Meta’s Engaging P/E Valuation
Buying and selling round $700, Meta’s inventory is at a 26.6X ahead earnings a number of which isn’t a stretched premium to the benchmark S&P 500.
What could attraction to long-term buyers is that META has the second least expensive P/E valuation amongst its Magnificent 7-themed huge tech friends with Alphabet’s GOOGL being the bottom at 22.4X and Tesla TSLA the very best at 123.3X.
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Takeaway
For now, Meta Platforms inventory lands a Zacks Rank #3 (Maintain). It is exhausting to depend META out with reference to extra upside after Meta’s robust This fall outcomes however there are reemerging considerations in regards to the firm’s elevated spending.
To that time, Meta initiatives capital expenditures within the vary of $60-$65 billion in 2025 in comparison with $39.23 billion final 12 months. That stated, Meta’s success with AI advert focusing on does counsel that elevated spending on its synthetic intelligence infrastructure may show to be very profitable and price holding META within the portfolio.
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Free: See Our Top Stock And 4 Runners Up
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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