Meta Misses Profit Estimates Due to Higher Costs
Meta Platforms Inc (NASDAQ:META) reported second-quarter earnings that missed analyst expectations, primarily due to a significant increase in costs including legal charges. The company's revenue grew faster than anticipated at $60.8 billion, up 28% year-over-year and above the estimated $60.17 billion. However, operating income fell short of estimates as expenses surged by 55%. Earnings per share came to $6.18, down from analysts' expectations of $7.22. Despite strong advertising revenue growth—up 27% year-over-year and exceeding forecasts—the company's legal charges amounted to $2.4 billion in the quarter. Meta also raised its full-year capital expenditure guidance due to increased spending needs. The Reality Labs segment reported a narrower-than-expected operating loss, while shares of Meta dropped nearly 6.7% after hours following the earnings report.
Tickers: $META
Topics: costs Meta profit_miss revenue_growth