Meta Platforms delivered a home-run earnings report after the closing bell Thursday — beating on sales and earnings while declaring its first-ever dividend and boosting its buyback. The bullish combination sent shares soaring in extended trading and fortified our belief in one of our largest positions. Revenue in the three months ended Dec. 31 rose nearly 25% year over year to $40.11 billion, easily topping the $39.18 billion expected by analysts, according to estimates compiled by LSEG, formerly Refinitv. Earnings per share (EPS) in the fourth quarter totaled $5.33, exceeding Wall Street’s $4.96 estimate, LSEG data showed. In the year-ago period, the Instagram and Facebook parent earned $1.76 per share. META 1Y mountain Meta Platforms 1 year Meta soared more than 15% after hours to roughly $455 per share — putting it well on its way to opening Friday’s session at a new all-time high. Meta’s registered its current record high close of $401.02 per share on Monday. Bottom line Meta Platforms stole the show Thursday evening. As if 25% revenue growth, operating margins above 40% (again) and robust first-quarter guidance weren’t enough, the social media giant tossed in a quarterly dividend declaration — 50 cents a share, payable in March — and an additional $50 billion stock buyback authorization. At year-end, Meta had $30.93 billion remaining in its prior buyback program. It’s no wonder the stock was flying in extended trading. Putting aside the strong fourth-quarter financial performance for a second, Meta’s decision to institute a quarterly dividend sends a bright signal of long-term confidence in its business to the investment community. To be sure, it’s a modest payout to start — carrying an annualized yield of around 0.5% based on Thursday’s closing stock price. But the action itself speaks the loudest right now because once a company heads down the dividend-paying road, it’s difficult to turn back. In other words, management teams don’t make this…
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