Meta Platforms Inc. (NASDAQ: FB) has confirmed that it will release Q4 2021 earnings on Wednesday, February 2, 2022.
What to look for
In recent weeks, Facebook, now known as Meta Platforms, has been under pressure as a result of the broad sell-off in tech equities. However, when the firm reports results on Wednesday, investors are expected to learn more regarding the company's work on the Oculus virtual reality device, which stock analysts believe will provide the social media giant a much-needed boost.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be $3.87 per share, representing a YoY increase of 1.03%. In the third quarter, the company reported earnings of $3.22 per share, representing a YoY increase of 19%. The company expects the investment in Facebook Reality Labs to reduce its operating profits for 2021 by $10 billion. Historical EPS performance in the last 12 quarters indicates that the company has topped EPS estimates nine times (75%) and missed thrice (25%).
Revenue: The company expects revenue in Q4 2021 to be around $33.38 billion, representing an 18.9% YoY increase. In the past quarter, the company reported revenue of $29.01 billion, representing a YoY increase of 35%.
Stock movement: FB shares have lost 8.2% since the company released its third-quarter earnings. Interestingly, FB shares have been DOWN 20 times out of the past 37 quarters. So, the historical price reaction suggests a 54% probability of the share price going DOWN once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 6% while the predicted move on the seventh day is 6%.
What analysts are saying
RBC Capital analyst Brad Erickson slashed his price target in Meta Platforms from $415 to $400 but maintained a Buy rating on the stock. According to the analyst, the data from 26 agency and advertising network channel contacts on overall spending patterns is "mixed," according to the analyst. Although Meta is "winning the Apple (AAPL) signal loss battle" in comparison to other social rivals, Erickson believes Facebook is also more vulnerable to the Tiktok threat than investors realize.
Morgan Stanely analyst Brian Nowak raised his price target on Meta Platforms from $365 to $395 and maintained a Buy rating on the shares as he revised his models and pushed forward valuations. Additionally, Nowak stated that he is bullish on Amazon (AMZN), Compass (COMP), Uber (UBER), Snap (SNAP), Roblox (RBLX), and Integral Ad Science(IAS) heading into 2022.
JPMorgan analyst Doug Anmuth slashed his price target on Meta Platforms from $390 to $385 but maintained a buy rating in the stock. In a research note, Anmuth informs investors that the company's sales growth will slow in 2022 versus tough comparisons, but Meta is gaining great headway against Apple's iOS modifications. Furthermore, the analyst believes that Reels has the potential to become a significant advertising medium. He also thinks the company has reached the 10 million operational virtual reality units mark. Therefore, Anmuth continues to recommend the stock.
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