Will Higher Ad Revenue Help Meta Platforms Beat Q3 Earnings?

Metaplatforms“META’s third quarter 2024 results, scheduled for release on October 30, are expected to reflect the benefits of higher advertising revenue.

It is expected to benefit from strong demand from advertisers. The Zacks Consensus Estimate for Meta Platforms' third-quarter advertising revenue is $39.48 billion, representing year-over-year growth of 17.3%.

We believe higher advertising revenue will help META shares rise following the release of third-quarter 2024 results. Meta Platforms currently has a Zacks Rank #2 (Buy), meaning investors should accumulate the stock now for better returns. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Meta Platforms shares have returned 69.7% year-to-date (YTD). Except NVIDIA NVDA outperformed the rest of Magnificent 7 over the same period. The group also includes META and NVDA alphabet GOOGL, Microsoft MSFT, Apple, Amazon and Tesla.

While NVIDIA shares have gained 183.8% year-to-date, GOOGL, Microsoft, Apple, Amazon and Tesla have returned 19.7%, 13.5%, 21.3%, 24% and 5.7%, respectively.

Meta Platforms, Inc. Sales ttm | Quote from Meta Platforms, Inc

Click here to see what Meta Platforms' overall performance is expected to be in the third quarter.

The Zacks Consensus Estimate for third-quarter earnings is $5.17 per share, up a few cents per share over the past 30 days, representing year-over-year growth of 17.77%.

Meta Platforms' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise coming in at 12.61%.

Find the latest EPS estimates and surprises in the Zacks earnings calendar.

Meta Platforms expects total revenue between $38.5 billion and $41 billion for the third quarter of 2024.

The consensus estimate for third-quarter revenue is currently $40.15 billion, representing growth of 17.58% from the year-ago quarter.

The staggering reach and increasing ad impressions (up 10% year-over-year in Q2 2024) make META one of the most important players in the digital ad sales market alongside Alphabet.

META's advertising revenue (99% of Family of Apps revenue) increased 21.7% year over year to $38.33 billion and accounted for 97.9% of second quarter revenue. At constant exchange rates, revenue increased 23% year-over-year.

Meta Platforms' focus on improving ad rankings and ad measurement through the use of AI has been a key catalyst in increasing advertisers' return on investment.

The Zacks Consensus Estimate for advertising revenue in Asia Pacific is $8.097 billion, representing growth of 18.6% in the second quarter of 2024.

Consensus advertising revenue in Europe, the United States and Canada and the Rest of the World is $9.158 billion, $17.716 billion and $4.947 billion, respectively, representing growth of 18.6%, 18, 5% and 19.6% respectively.

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