Technology and social media giant meta platforms META will report first quarter financial results after market close on Wednesday.

Here are analysts’ top earnings expectations and key things to watch for.

Analyst Estimates: According to Meta Platforms, analysts expect sales of 27.62 billion US dollars for the first quarter Data from Benzinga Pro.

For comparison, Meta Platforms reported revenue of $27.91 billion in the first quarter of its most recent fiscal year, which means revenue is expected to decline.

Meta Platforms reported revenue of $27.91 billion, $28.82 billion, $27.71 billion, and $32.17 billion for the first through fourth quarters of 2022, respectively. The last three of the total earnings missed analyst estimates.

For earnings per share, analysts expect Meta Platforms to report $2.03 for the first quarter. This would be a significant drop from the $2.72 reported last year. For the past two quarters, Meta Platforms has beaten estimates for earnings per share.

Related link: Meta options traders are banking on stocks recovering some losses by Friday

What Analysts Observe: Morgan Stanley analyst Brian Nowak recently repeated Overweight on meta platforms.

The analyst, who has a $250 price target for META, saw the company benefiting from growth in artificial intelligence initiatives. Among the points the analyst is observing are generative AI tools that could increase engagement and monetization of ad units on the company’s social media platforms.

RBC Capital analyst Brad Erickson recently repeated Outperformance rating and a price target of $225 on meta platforms.

The analyst was cautious on meta platforms, noting some changes that could be due to consumer weakness. Erickson will monitor if engagement and ad spend are weak.

In April, Wolfe Research maintained an outperform rating and raised the price target on META to $260. Bank of America also kept a buy rating and increased the price…