Will Higher Ad Revenues Aid Meta Platforms in Q4 Earnings?

Meta Platforms' META fourth-quarter 2024 results, set to be reported on Jan. 29, are expected to reflect the benefits of higher advertising revenues.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for Meta Platforms’ fourth-quarter advertising revenues is pegged at $45.43 billion, indicating growth of 17.4% year over year.We believe higher ad revenues will help META shares to move higher post fourth-quarter 2024 earnings release despite concerns over the monetization of its AI services and growing regulatory headwinds, particularly in Europe. Meta Platforms, Inc. Revenue (TTM) Meta Platforms, Inc. revenue-ttm | Meta Platforms, Inc. Quote Click here to learn how Meta Platforms’ overall fourth-quarter performance is likely to be.META’s Q4 Estimates Shows Upward TrendThe Zacks Consensus Estimate for META’s fourth-quarter earnings is pegged at $6.90 per share, up 2.07% over the past 30 days, indicating 29.46% year-over-year growth. Meta Platforms’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 11.34%.The consensus estimate for fourth-quarter revenues is currently pegged at $46.97 billion, indicating growth of 17.09% from the figure reported in the year-ago quarter.Strong Ad Revenue Growth to Aid META’s Q4 Top LineMETA’s staggering reach and increasing ad impressions (up 7% year over year in the third quarter of 2024) make it one of the most important players in the digital ad sales market apart from Alphabet.Meta Platforms’ focus on improving ad ranking and measurement by leveraging AI has been a key catalyst driving advertisers’ return on investment. The Zacks Consensus Estimate for advertising revenues in Asia-Pacific is pegged at $8.87 billion, indicating growth of 21.2% in the fourth quarter of 2024. The consensus mark for advertising revenues in Europe, the United States and Canada, and the Rest of the World is pegged at $10.791 billion, $20.845 billion and $5.317 billion, respectively, indicating 17.8%, 17.2% and 19.5% growth.META has been leveraging AI and machine learning to boost the potency of WhatsApp, Instagram, Facebook and Threads. Effective usage of AI has been helping the company keep its users engaged. AI-driven feed recommendations have been a key catalyst.Meta Platforms is committed to prioritizing user safety and well-being through initiatives to enhance parental supervision, messaging privacy and time management on its platforms. These factors are expected to have driven user base growth in the fourth quarter of 2024. The consensus mark for Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger or WhatsApp) on a given day, is expected to be 3.33 billion for the fourth quarter of 2024.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.META currently has an Earnings ESP of +6.74% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Other Stocks to ConsiderHere are some other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:BILL Holdings BILL presently has an Earnings ESP of +29.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.BILL Holdings’ shares have returned 16.2% in the trailing 12-month period. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.ServiceNow NOW has an Earnings ESP of +0.91% and a Zacks Rank of 2 at present. ServiceNow shares have gained 45.1% in the trailing 12-month period. NOW is set to report its fourth-quarter 2024 results on Jan. 29.DoorDash DASH currently has an Earnings ESP of +35.67% and a Zacks Rank #2.DASH shares have surged 65.2% in the trailing 12-month period. DASH is set to report its fourth-quarter 2024 results on Feb.11.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceNow, Inc. (NOW): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks