Meta Platforms, Inc. Just Beat EPS By 8.9%: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for Meta Platforms, Inc. (NASDAQ:META) shares in the week since its first-quarter report, with the stock down 12% to US$441. Meta Platforms reported US$36b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.71 beat expectations, being 8.9% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Meta Platforms

Taking into account the latest results, the most recent consensus for Meta Platforms from 53 analysts is for revenues of US$158.9b in 2024. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 11% to US$20.08. In the lead-up to this report, the analysts had been modelling revenues of US$158.7b and earnings per share (EPS) of US$20.02 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$524, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Meta Platforms analyst has a price target of US$600 per share, while the most pessimistic values it at US$400. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.7% annually. So it's pretty clear that Meta Platforms is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$524, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Meta Platforms going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Meta Platforms that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.