Results: Meta Platforms, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Meta Platforms, Inc. (NASDAQ:META) recently reported its quarterly numbers. Revenues were US$41b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$6.03 were also better than expected, beating analyst predictions by 14%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Meta Platforms

After the latest results, the 63 analysts covering Meta Platforms are now predicting revenues of US$186.2b in 2025. If met, this would reflect a notable 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 14% to US$25.14. Before this earnings report, the analysts had been forecasting revenues of US$184.8b and earnings per share (EPS) of US$24.63 in 2025. So the consensus seems to have become somewhat more optimistic on Meta Platforms' earnings potential following these results.

There's been no major changes to the consensus price target of US$640, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Meta Platforms at US$811 per share, while the most bearish prices it at US$475. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Meta Platforms' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Meta Platforms'historical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Meta Platforms is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Meta Platforms following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$640, 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. We have estimates - from multiple Meta Platforms analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Meta Platforms has 1 warning sign we think you should be aware of.

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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.