Wall Street analysts forecast that Alphabet (GOOGL) will report quarterly earnings of $2.58 per share in its upcoming release, pointing to a year-over-year increase of 20%. It is anticipated that revenues will amount to $94.7 billion, exhibiting an increase of 16% compared to the year-ago quarter.
The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Alphabet metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Revenues- Google properties' should come in at $72.98 billion. The estimate indicates a change of +13.1% from the prior-year quarter.
Analysts forecast 'Revenues- Google Cloud' to reach $16.25 billion. The estimate indicates a year-over-year change of +35.9%.
The combined assessment of analysts suggests that 'Revenues- YouTube ads' will likely reach $11.82 billion. The estimate suggests a change of +12.9% year over year.
Analysts' assessment points toward 'Revenues- Google advertising' reaching $80.97 billion. The estimate suggests a change of +11.8% year over year.
Analysts expect 'Revenues- Google Search & other' to come in at $61.27 billion. The estimate indicates a year-over-year change of +13.4%.
The collective assessment of analysts points to an estimated 'Revenues- Google Network' of $7.80 billion. The estimate points to a change of -1.9% from the year-ago quarter.
The average prediction of analysts places 'Revenues- EMEA' at $32.40 billion. The estimate indicates a change of +15% from the prior-year quarter.
Analysts predict that the 'Revenues- United States' will reach $54.08 billion. The estimate indicates a year-over-year change of +14.2%.
Based on the collective assessment of analysts, 'Revenues- Other Americas (Canada and Latin America)' should arrive at $6.92 billion. The estimate indicates a change of +20.7% from the prior-year quarter.
It is projected by analysts that the 'Revenues- APAC' will reach $17.85 billion. The estimate suggests a change of +17.8% year over year.
The consensus estimate for 'Total TAC (traffic acquisition costs)' stands at $16.18 billion. Compared to the current estimate, the company reported $14.85 billion in the same quarter of the previous year.
The consensus among analysts is that 'Headcount (Number of employees)' will reach 191,102 . Compared to the current estimate, the company reported 183,323 in the same quarter of the previous year.
View all Key Company Metrics for Alphabet here>>>
Shares of Alphabet have experienced a change of +8.1% in the past month compared to the +0.9% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), GOOGL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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