The upcoming report from Alphabet (GOOGL) is highly anticipated, as analysts predict an increase in quarterly earnings to $1.49 per share, indicating growth of 27.4% compared to the same period last year. Forecasts also suggest that the company's revenues will reach $66.02 billion, reflecting a 13.7% year-over-year increase. It is noted that the consensus EPS estimate for the quarter has remained steady over the past 30 days, showcasing how analysts monitoring the stock have collectively reassessed their initial predictions during this period.
Ahead of a company's earnings announcement, the revisions to earnings estimates play a crucial role in predicting potential investor behavior towards the stock. Research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. While investors commonly rely on consensus earnings and revenue estimates to gauge quarterly business performance, delving into analysts' projections for specific key metrics can provide valuable insights into the company's performance.
Analysts' combined evaluation indicates expectations for various specific Alphabet metrics such as revenues from Google properties, Google Cloud, YouTube ads, Google advertising, Google Search & other, Google Network, EMEA revenues, United States revenues, Other Americas revenues, APAC revenues, Total TAC (traffic acquisition costs), and Headcount (Number of employees). The predictions for these metrics range from expected changes of +2.3% to +24.1% year over year, giving a comprehensive overview of the company's performance expectations across different sectors and regions. Furthermore, shares of Alphabet have shown a 2.2% increase in the past month, contrasting with the -4% move of the Zacks S&P 500 composite, and with a Zacks Rank #3 (Hold), GOOGL is anticipated to align with the overall market performance in the near future.