- Meta reported its second quarter results after the bell on Wednesday, missing on earnings per share (EPS) but beating on revenue.
- For the quarter, Meta saw EPS of $6.18 on revenue of $60.8 billion.
- Analysts were anticipating EPS of $7.14 and revenue of $60.2 billion, based on Bloomberg consensus estimates.
- Meta stock fell nearly 8% immediately following the results.
- For the third quarter, Meta anticipates revenue between $61 billion and $64 billion.
- The company's revenue forecast also came in light, with the midpoint below the average analyst estimate of $63.2 billion.
- Meta's Q2 advertising revenue came in at $59.3 billion versus expectations of $59.07 billion.
- Net income for the period slid 13% to $15.85 billion from $18.34 billion in the same quarter last year.
- Meta's total costs and expenses came in at $42.03 billion, representing an increase of 55% from a year ago.
- With Meta pouring money into artificial intelligence infrastructure, its free cash flow dwindled to $784 million in the quarter from $8.55 billion a year earlier.
Meta's second-quarter earnings revealed a revenue of $60.8 billion, exceeding analyst expectations of $60.2 billion, but the earnings per share (EPS) of $6.18 fell short of the anticipated $7.14.1
The company's stock fell nearly 8% immediately after the results were announced, reflecting investor concerns over its increased spending on artificial intelligence infrastructure.
Meta's advertising revenue reached $59.3 billion, slightly above expectations of $59.07 billion. However, the company reported a net income decline of 13% to $15.85 billion compared to the previous year.78
For the upcoming third quarter, Meta forecasts revenue between $61 billion and $64 billion, with a midpoint below the average analyst estimate of $63.2 billion.6
The company also raised its capital expenditure estimates to between $135 billion and $145 billion, reflecting its commitment to AI investments.
Meta's total costs and expenses surged by 55% year-over-year to $42.03 billion, contributing to a decrease in free cash flow to $784 million from $8.55 billion a year earlier.910
As of the end of June, Meta's daily active users stood at 3.6 billion, slightly below Wall Street's expectations of 3.61 billion.
“Meta's net income slid 13% year-over-year to $15.85 billion, while total costs surged 55% to $42.03 billion. The company anticipates third-quarter revenue between $61 billion and $64 billion, which falls short of Wall Street's expectations.”
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