Meta Platforms Inc. (NASDAQ:META) recently unveiled its third-quarter financial results, demonstrating significant growth and outperforming revenue expectations. This performance prompted a reevaluation from financial analysts, leading to adjusted price targets and a varied sentiment regarding the company's stock trajectory.
Meta Platforms' third-quarter report, released on a Wednesday, highlighted a strong financial period. The company recorded diluted earnings per share of $1.05. It's important to note that this figure includes a substantial one-time, non-cash income tax charge of $15.93 billion, which makes direct comparison to earlier estimates of $6.68 challenging. However, on an adjusted basis, Meta's earnings per share stood at $7.25, surpassing analyst predictions according to data from Benzinga Pro. The company's revenue for the quarter reached $51.24 billion, exceeding the Street's estimate of $49.38 billion. This represents a significant year-over-year increase of 26.25% from the $40.58 billion reported in the same period last year.
Mark Zuckerberg, Meta's founder and CEO, expressed satisfaction with the quarter's outcomes, remarking, \"We had a strong quarter for our business and our community.\" Looking ahead, Meta provided guidance for the fourth quarter, projecting revenue to be in the range of $56 billion to $59 billion, which largely aligns with the analyst consensus of $57.21 billion. Additionally, the company announced an upward revision to its capital expenditure guidance for fiscal year 2025.
Despite the positive earnings report, Meta's shares experienced a decline, falling by 9.3% to $681.60 in pre-market trading. This immediate market reaction spurred several analysts to adjust their financial outlooks and price targets for the tech giant. For instance, Justin Post, an analyst at B of A Securities, maintained a 'Buy' rating on Meta Platforms but lowered the price target from $900 to $810. Conversely, Barton Crockett from Rosenblatt upheld his 'Buy' rating and increased his price target from $1,086 to $1,117. These differing revisions underscore the complex interpretations of Meta's future prospects, balancing robust performance with market uncertainties and investor expectations.
In conclusion, Meta Platforms' recent third-quarter results showcased impressive financial health, marked by strong revenue and adjusted earnings. The company's leadership expressed confidence, and future revenue projections appear stable. However, the subsequent adjustments in analyst price targets, reflecting both optimism and caution, highlight the dynamic nature of market valuations and the diverse perspectives on Meta's trajectory amidst evolving technological and economic landscapes.