Meta Platforms, the parent company of Facebook and Instagram, experienced a significant surge in its stock price after reporting impressive fourth-quarter earnings and unveiling plans for its inaugural dividend. The company's Q4 earnings report exceeded analysts' expectations, contributing to a more than 14% increase in Meta stock during after-hours trading.
For the December-ending quarter, Meta Platforms reported earnings of $5.33 per share on sales of $40.1 billion, surpassing projections of $4.82 per share on $39.1 billion in sales according to FactSet. The company demonstrated robust year-over-year growth, with sales increasing by 25% and earnings skyrocketing by 203%.
In a noteworthy move, Meta announced its first-ever dividend of 50 cents per share of common stock, scheduled to be paid on March 26 to shareholders on record as of Feb. 22.
Looking ahead to the current quarter, Meta projected sales between $34.5 billion and $37 billion, surpassing analysts' expectations of $33.9 billion in sales for the March quarter.
Meta's success is attributed to the continued growth of its community and business. Monthly active users for Facebook rose by 3% year over year, reaching 3.07 billion. Digital advertising sales remained a key driver, contributing $38.7 billion to Meta's revenue for the quarter, a 24% increase from the same period last year.
Despite challenges in the metaverse-focused Reality Labs division, which incurred a loss of $4.6 billion, Meta's Family of Apps, including Facebook, Instagram, WhatsApp, Reels, and Threads, generated an impressive $21 billion income for the quarter, doubling the figure from Q4 2022.
Meta's strategic move towards efficiency is evident in its employee count, which decreased by 22% throughout 2023, ending the year with 67,317 employees.
The positive financial performance propelled Meta stock to a 14% gain since the beginning of the year, building upon a remarkable 194% surge in the previous year. The company's market capitalization exceeded $1 trillion in January, reinforcing its status among the tech giants.
As of Thursday, Meta holds a Relative Strength Rating of 96, indicating it outperformed 96% of all stocks in the past 12 months, and boasts a perfect 99 IBD Composite Rating, reflecting strength across various technical and fundamental metrics.
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