Meta Platforms Q1 preview: Another disappointing report ahead?
Kelly Sullivan/Getty Images Entertainment


Meta Platforms (NASDAQ:FB) is scheduled to announce Q1 earnings results on Wednesday, April 27th, after market close.
The consensus EPS Estimate is $2.51 (-23.9% Y/Y) and the consensus Revenue Estimate is $28.22B (+7.8% Y/Y).
In January, Meta posted Q4 earnings and guidance that fell well short of Wall Street expectations. Notably, the company changed its reporting structure, for the first time breaking out the results of its metaverse efforts in the Reality Labs unit.

The weak Q4 numbers sent shares reeling, as investors sliced more than $200B off the social-media giant's market cap, marking the biggest single-day equity wipeout ever.



In addition, the company spent nearly $20B on share repurchases during the fourth quarter that provided little, if any value.
The firm guided to first-quarter revenue of $27B-$29B- 3%-11% year-over-year growth, "impacted by headwinds to both impression and price growth." It is also seeing signs that sales are being affected by advertising budgets that are tightening up. "We're hearing from advertisers that macroeconomic challenges like cost inflation and supply chain disruptions are impacting advertiser budgets."
Over the last 3 months, EPS estimates have seen 0 upward revisions and 15 downward. Revenue estimates have seen 0 upward revisions and 26 downward.
Over the last 2 years, FB has beaten EPS estimates 75% of the time and has beaten revenue estimates 100% of the time.
Baird analysts suggest Meta's Q1 will be hurt by ongoing pressure in direct response due to "Apple/privacy issues, the self-inflicted priority to grow Reels, increasing competition from TikTok, and slower e-commerce growth."
Other analysts have also warned of headwinds in recent price target cuts, highlighting growing competition and ad-identifier change among factors limiting revenue potential, according to Bloomberg Intelligence.
A more recent SA contributor analysis suggested that shares are down to levels in 2018, but Meta should move past the current temporary period of EPS decline and return to profitability growth in future years.