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Alphabet (GOOGL) to Report Q2 Earnings: What's in the Cards?
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Alphabet Inc. (GOOGL - Free Report) is scheduled to report second-quarter fiscal 2018 results on Jul 23.
Notably, the stock outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 7.83%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $9.51 per share, indicating an 89.2% increase on a year-over-year basis. Revenues are estimated to be around $25.65 billion, indicating a 22.60% increase from the year-ago quarter.
Coming to price performance, Alphabet’s shares have returned 22% in the past 12 months, outperforming the industry’s growth of 6.1%.
Factors to Consider
Alphabet’s focus on innovation, artificial intelligence (AI), cloud, home automation space, strategic acquisitions and Android OS is expected to be a tailwind. Notably, the company successfully adapted to changing consumer trends, which is a positive.
It has managed to maintain its dominant share in a competitive, fast-growing search market. Additionally, Google has been growing rapidly in the fast-growing highly-competitive cloud market. In this regard, Google plans to roll out a new storage option called Cloud Filestore, which will initially be launched at beta stage. Filestore offers managed file storage services and features network attached storage (“NAS”) facility.
In order to sustain its market share in the growing healthcare market, Alphabet’s healthcare division Verily is set to form a joint venture with ResMed (RMD). Through this venture, Alphabet strives to help people with undiagnosed and untreated sleep apnea.
The company’s expanding portfolio of services will continue to support it in gaining momentum in the market by aiding clientele growth. All these initiatives will likely drive Alphabet’s top-line growth.
However, the company faces significant litigation all over the world as a result of its dominant position in search. Increased spending on its consumer gadgets, YouTube video app and cloud computing services also remains a concern.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Alphabet has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.11%. This indicates that the company is unlikely to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies, which per our model have the right combination of elements to post an earnings beat in their respective quarters to be reported:
Scientific Games Corporation has an Earnings ESP of +64.71% and a Zacks Rank #2.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Alphabet (GOOGL) to Report Q2 Earnings: What's in the Cards?
Alphabet Inc. (GOOGL - Free Report) is scheduled to report second-quarter fiscal 2018 results on Jul 23.
Notably, the stock outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 7.83%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $9.51 per share, indicating an 89.2% increase on a year-over-year basis. Revenues are estimated to be around $25.65 billion, indicating a 22.60% increase from the year-ago quarter.
Coming to price performance, Alphabet’s shares have returned 22% in the past 12 months, outperforming the industry’s growth of 6.1%.
Factors to Consider
Alphabet’s focus on innovation, artificial intelligence (AI), cloud, home automation space, strategic acquisitions and Android OS is expected to be a tailwind. Notably, the company successfully adapted to changing consumer trends, which is a positive.
It has managed to maintain its dominant share in a competitive, fast-growing search market. Additionally, Google has been growing rapidly in the fast-growing highly-competitive cloud market. In this regard, Google plans to roll out a new storage option called Cloud Filestore, which will initially be launched at beta stage. Filestore offers managed file storage services and features network attached storage (“NAS”) facility.
In order to sustain its market share in the growing healthcare market, Alphabet’s healthcare division Verily is set to form a joint venture with ResMed (RMD). Through this venture, Alphabet strives to help people with undiagnosed and untreated sleep apnea.
The company’s expanding portfolio of services will continue to support it in gaining momentum in the market by aiding clientele growth. All these initiatives will likely drive Alphabet’s top-line growth.
However, the company faces significant litigation all over the world as a result of its dominant position in search. Increased spending on its consumer gadgets, YouTube video app and cloud computing services also remains a concern.
What the Zacks Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Alphabet has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.11%. This indicates that the company is unlikely to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alphabet Inc. Price and EPS Surprise
Alphabet Inc. Price and EPS Surprise | Alphabet Inc. Quote
Stocks to Consider
Here are some companies, which per our model have the right combination of elements to post an earnings beat in their respective quarters to be reported:
CSX Corporation (CSX - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #1.You can seethe complete list of today’s Zacks #1 Rank stocks here.
Scientific Games Corporation has an Earnings ESP of +64.71% and a Zacks Rank #2.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>