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FINWIRES

Research Alert: Meta Guides Q2 In Line With Views; Tweaks Capex Spend Higher

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

META posted Q1 revenue growth of 33% to $56.31B, beating our 31% forecast, while diluted EPS of $10.44 (+62% Y/Y) and adjusted EPS of $7.31 exceeded consensus of $7.08. Strong advertising fundamentals drove the beat, with ad impressions growing 19% and average price per ad increasing 12%, demonstrating both reach expansion and pricing power across platforms. The robust performance reflects disciplined operating leverage with margins holding steady at 41% despite 35% cost increases, supported by strong cash generation of $32.23B in operating cash flow. Management guided Q2 revenue of $58B-$61B (25% growth), in line with expectations, while maintaining full-year expense guidance of $162B-169B. We note the modest capex guidance increase to $125B-$145B from $115B-$135B, reflecting higher component pricing and data center costs. Reality Labs losses of $4.03B showed improvement from the prior year's $4.21B, suggesting the segment may be approaching peak losses in our view.

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Research Alert: Allstate: Underwriting Strength Fuels Significant Q1 Eps Beat

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ALL reported Q1 operating EPS of $10.65 vs. $3.53 in the prior year, topping our $6.85 estimate and the $7.24 consensus forecast. The strong results were led by improved underwriting performance. Q1 revenue growth of 3% was below our 4%-8% forecast, though P-C earned premiums rose 5.5%. The combined ratio improved to 82.0% from 97.4% on 44% lower catastrophe losses. The underlying combined ratio (ex-catastrophes) improved to 80.3% from 83.1%, validating the success of previous rate increases. The recent $2B sale of the employer voluntary benefits business, part of ALL's broader restructuring strategy, will free up capital for redeployment into core P-C operations. We expect ALL to maintain pricing discipline despite anticipated increased competition, particularly in auto insurance. The company's strong underlying underwriting results demonstrate the success of aggressive rate increases that were implemented to address adverse claim trends. We look forward to management's pricing outlook on the April 30 call.

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