Meta Platforms Inc. (NASDAQ:META) Quarterly Earnings Preview

• Meta Platforms Inc. (NASDAQ:META) is expected to report a 17% increase in Q4 sales, reaching around $47 billion.
• The company's EPS is anticipated to rise by 29% to $6.90, up from $5.33 in the same quarter last year.
• Meta's strategic use of artificial intelligence and a potential TikTok ban in the U.S. could significantly boost its advertising revenue.

Meta Platforms Inc. (NASDAQ:META) is gearing up to release its quarterly earnings on January 29, 2025. Analysts expect the earnings per share (EPS) to be $6.90, with projected revenue of approximately $46.97 billion. Meta, a leader in the social media and technology space, competes with giants like Microsoft and Tesla, which are also releasing earnings on the same day.

Meta is expected to report a 17% increase in Q4 sales, reaching around $47 billion. This growth is supported by a 29% rise in EPS to $6.90, up from $5.33 in the same quarter last year. The company has consistently outperformed the Zacks EPS Consensus for eight consecutive quarters, highlighting its strong financial performance.

Meta's strategic use of artificial intelligence to boost user engagement is a key driver of its top-line growth. Despite regulatory challenges, the company anticipates strong advertising performance to support its fourth-quarter results. The Zacks Internet-Software Industry, where Meta ranks in the top 19%, further underscores its robust market position.

The geopolitical landscape in social media could benefit Meta, especially with the potential TikTok ban in the U.S. TikTok's $12.34 billion in U.S. advertising revenue last year presents an opportunity for Meta. Analysts from Morgan Stanley predict Meta as the "largest fundamental winner" if the ban proceeds, potentially boosting its advertising revenue.

Meta's financial metrics reflect its market valuation. With a P/E ratio of 30.05 and a price-to-sales ratio of 10.66, the market values its earnings and revenue highly. The company's low debt-to-equity ratio of 0.30 and strong liquidity, indicated by a current ratio of 2.73, demonstrate its financial stability and ability to cover short-term liabilities.