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Meta Beats Q2 Estimates, Shares Surge on Upbeat Guidance
30 Jul
Summary
- Meta reported Q2 2022 revenue and EPS above analyst estimates
- Meta's advertising revenue grew 22% year-over-year
- Meta provided Q3 2022 sales guidance ahead of expectations
On July 30, 2022, Meta Platforms Ltd., the parent company of Facebook, reported strong second-quarter results that exceeded analyst expectations. The company's revenue for the quarter reached $47.52 billion, up 22% from the same period last year, while its earnings per share (EPS) came in at $7.14, well above the $5.92 estimate.
Meta's advertising revenue, which accounts for the majority of its top line, stood at $46.56 billion, surpassing the $43.97 billion estimate. CEO Mark Zuckerberg attributed this performance to greater efficiency and gains unlocked through the company's AI technology.
For the current quarter, Meta projected sales to be between $47.5 billion and $50.5 billion, which is ahead of the $46.14 billion that analysts were expecting. The company also raised the lower end of its capital expenditure guidance for the year to $66 billion.
However, Meta cautioned that growth in the fourth quarter will be lower than that in the third quarter, as there will be a high base effect playing out, although it did not provide any specific guidance for Q4 sales.
Meta's shares surged as much as 12% in after-hours trading on the strong results and upbeat guidance, building on a 16% gain so far this year as of the close of regular trading on July 30.
