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Earnings season is always an exciting time to be an investor, as companies finally pull the curtain back and unveil what’s transpired behind the scenes. The 2023 Q4 cycle looks to be another critical period, particularly as investors look to find further clues about what lies ahead in 2024 overall.
One company in particular, Meta Platforms (META - Free Report) , saw its shares melt higher post-earnings, with investors swarming. On the contrary, Apple (AAPL - Free Report) shares faced selling pressure. Let’s take a closer look at the releases.
Meta Q4
Meta has consistently posted robust earnings results lately, regularly exceeding our expectations and enjoying buying pressure following the releases. Concerning the report in focus, the technology titan generated $40.1 billion in sales, improving by a sizable 25% from the year-ago period.
Top line results reflect a considerable acceleration, with the 25% jump penciling in the highest year-over-year growth rate in eight quarters.
Undoubtedly to the likes of investors, Q4 costs and expenses fell 8% compared to the same period last year, and the company purchased over $6 billion in shares throughout the period. META’s improved operations have clearly led to significant benefits, with quarterly EPS of $5.33 well above the year-ago mark and easily surpassing the $4.83 Zacks Consensus EPS Estimate. Impressively, the company’s operating margin came in at 41%, crushing the year-ago figure of 20%.
The company’s platform also continues to expand, with Facebook daily and monthly active users growing by 6% and 3%, respectively. And its advertising business remains sound, with ad impressions delivered across its family of apps improving 21% year-over-year.
META has consistently posted better-than-expected advertising revenue.
Image Source: Zacks Investment Research
And to top off the robust results, the company unveiled its first-ever dividend, which is payable on March 26th to stockholders of record as of the close of business on February 22nd. Mark Zuckerberg on the results - ‘We had a good quarter as our community and business continue to grow. We've made a lot of progress on our vision for advancing AI and the metaverse.’
Apple Q1
Concerning headline figures, Apple posted quarterly revenue of $119.6 billion, climbing 2% year-over-year, and EPS of $2.18, up 16% from the year-ago mark and reflecting a record. Apple shares didn’t experience the same positivity as META, facing selling pressure post-earnings. It’s worth noting that the results snapped a four-quarter long streak of negative year-over-year revenue growth rates.
Nonetheless, there was much to like in the report, with Services revenue of $23.1 billion reflecting a record and jumping 11.3% from the same period last year. iPhone revenues also showed growth, with $69.7 billion in quarterly revenue 6% higher year-over-year and exceeding our consensus expectations by a modest 1.5%.
Interestingly enough, iPhone results snapped a back-to-back streak of negative surprises.
Image Source: Zacks Investment Research
Unsurprisingly, Apple continued to flex its cash-generating abilities, posting nearly $40 billion of operating cash flow. Margin expansion was also prevalent, moving higher from 42.9% to 45.6%.
The negative reaction among shares could likely be attributed to worries stemming from demand in China. Revenues in China totaled $20.8 billion, moving 13% lower year-over-year as the company faces competition in the area.
Bottom Line
Earnings season is always an exciting time. Beloved market titans Apple (AAPL - Free Report) and Meta Platforms (META - Free Report) revealed their results after the close today. META shares soared on news of a dividend and improved profitability, whereas AAPL shares faced pressure following worries about demand in China.
Image: Bigstock
What's Going On With Meta and Apple Shares?
Earnings season is always an exciting time to be an investor, as companies finally pull the curtain back and unveil what’s transpired behind the scenes. The 2023 Q4 cycle looks to be another critical period, particularly as investors look to find further clues about what lies ahead in 2024 overall.
One company in particular, Meta Platforms (META - Free Report) , saw its shares melt higher post-earnings, with investors swarming. On the contrary, Apple (AAPL - Free Report) shares faced selling pressure. Let’s take a closer look at the releases.
Meta Q4
Meta has consistently posted robust earnings results lately, regularly exceeding our expectations and enjoying buying pressure following the releases. Concerning the report in focus, the technology titan generated $40.1 billion in sales, improving by a sizable 25% from the year-ago period.
Top line results reflect a considerable acceleration, with the 25% jump penciling in the highest year-over-year growth rate in eight quarters.
Undoubtedly to the likes of investors, Q4 costs and expenses fell 8% compared to the same period last year, and the company purchased over $6 billion in shares throughout the period. META’s improved operations have clearly led to significant benefits, with quarterly EPS of $5.33 well above the year-ago mark and easily surpassing the $4.83 Zacks Consensus EPS Estimate. Impressively, the company’s operating margin came in at 41%, crushing the year-ago figure of 20%.
The company’s platform also continues to expand, with Facebook daily and monthly active users growing by 6% and 3%, respectively. And its advertising business remains sound, with ad impressions delivered across its family of apps improving 21% year-over-year.
META has consistently posted better-than-expected advertising revenue.
Image Source: Zacks Investment Research
And to top off the robust results, the company unveiled its first-ever dividend, which is payable on March 26th to stockholders of record as of the close of business on February 22nd. Mark Zuckerberg on the results - ‘We had a good quarter as our community and business continue to grow. We've made a lot of progress on our vision for advancing AI and the metaverse.’
Apple Q1
Concerning headline figures, Apple posted quarterly revenue of $119.6 billion, climbing 2% year-over-year, and EPS of $2.18, up 16% from the year-ago mark and reflecting a record. Apple shares didn’t experience the same positivity as META, facing selling pressure post-earnings. It’s worth noting that the results snapped a four-quarter long streak of negative year-over-year revenue growth rates.
Nonetheless, there was much to like in the report, with Services revenue of $23.1 billion reflecting a record and jumping 11.3% from the same period last year. iPhone revenues also showed growth, with $69.7 billion in quarterly revenue 6% higher year-over-year and exceeding our consensus expectations by a modest 1.5%.
Interestingly enough, iPhone results snapped a back-to-back streak of negative surprises.
Image Source: Zacks Investment Research
Unsurprisingly, Apple continued to flex its cash-generating abilities, posting nearly $40 billion of operating cash flow. Margin expansion was also prevalent, moving higher from 42.9% to 45.6%.
The negative reaction among shares could likely be attributed to worries stemming from demand in China. Revenues in China totaled $20.8 billion, moving 13% lower year-over-year as the company faces competition in the area.
Bottom Line
Earnings season is always an exciting time. Beloved market titans Apple (AAPL - Free Report) and Meta Platforms (META - Free Report) revealed their results after the close today. META shares soared on news of a dividend and improved profitability, whereas AAPL shares faced pressure following worries about demand in China.
For a detailed analysis of overall Q4 expectations, I invite you to view our weekly Earnings Trends report >>> Q4 Earnings: Tech Flexes Strong Growth