Meta Platforms (META) surpasses earnings estimates, sees significant revenue growth, and announces positive outlook

From Nasdaq: 2024-08-30 11:31:44

Meta Platforms (META) has outperformed the S&P 500 with a 4.1% increase in shares since the last earnings report. Q2 earnings beat estimates at $5.16 per share with a 73.2% surge year over year. Revenues of $39.07 billion increased 22.1% year over year. Family of Apps’ revenues rose 22.1% to $38.72 billion.

Advertising revenues from Family of Apps increased 21.7% year over year to $38.33 billion, accounting for 97.9% of second-quarter revenues. Ad impressions increased by 10% year over year, with average price per ad jumping by 10%. Online commerce drove the most year-over-year revenue growth.

Total costs and expenses increased by 7.2% year over year to $24.22 billion, with operating income jumping by 58.1% to $14.85 billion. Operating margin expanded significantly to 38%. The company repurchased $6.32 billion of its Class A common stock in the reported quarter and paid a dividend worth $1.27 billion.

Meta Platforms expects total revenues between $38.5 billion and $41 billion for the third quarter of 2024. For the year, the company anticipates total expenses between $96 billion and $99 billion. Meta Platforms has a Zacks Rank #3 (Hold) with an upward trend in estimates revision in the past month. Another stock in the same industry, Paypal (PYPL), reported revenues of $7.89 billion in the last quarter, representing a year-over-year change of +8.2%.



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