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For the quarter under review, the Zacks Consensus Estimate for revenues is pegged at $60.23 billion, indicating an improvement of 4.8% from the year-ago reported number.
The consensus mark for earnings is pegged at $1.32 per share, indicating 9.1% growth from the previous year’s reported figure. The figure has moved 0.7% downward over the past 30 days.
The company missed the Zacks Consensus Estimate in three of the trailing four quarters while surpassing the same once, delivering a negative earnings surprise of 4.4%, on average.
Alphabet’s continued efforts toward innovation in AI techniques for the advancement of its search segment, which accounts for a major portion of its total revenues, are expected to have continued driving traffic on its platform in the to-be-reported quarter.
Its recent move to integrate generative AI technology into its search engine might have been a major positive. With the large language models-powered enhanced search results, Google is likely to have driven its search momentum in the second quarter. Language models like BERT and MUM, coupled with multi-search and visual exploration features, are expected to have continued improving the search results.
This apart, strength across Google Lens and Google Maps is expected to have contributed well to the second quarter’s Search performance.
The Zacks Consensus Estimate for Google Search & Other revenues is pegged at $41.8 billion, reflecting an increase of 2.6% from the year-ago quarter’s reported figure.
Stabilization in advertisers’ spend is expected to have benefited the advertising business, which has been performing sluggishly over the past few quarters. Strength in Automatically Created Assets and Performance Max is likely to have driven Google’s momentum among advertisers. The improving performance of YouTube ads might have been a positive.
However, softness in Network advertising might have been a major concern.
The consensus mark for Google advertising is pegged at $57 billion, reflecting growth of 1.3% from the reported figure in the prior-year quarter.
Coming to non-advertisement revenues of YouTube, strengthening user momentum in YouTube Shorts might have been a tailwind. Google’s growing efforts to bolster relationships with content creators are likely to have acted as a positive.
The introduction of major updates and various user-friendly features of YouTube Premium is likely to have bolstered the Premium subscriber base during the quarter under review. Also, solid momentum across YouTubeTV and YouTube Primetime Channels might have been another positive.
These factors might have driven growth in Google’s Other revenues, for which the consensus mark stands at $7.2 billion, reflecting growth of 10.4% from the year-ago reported figure.
The growing momentum across Android 13 and Android 12 is likely to have benefited Alphabet’s performance in the to-be-reported quarter.
All the abovementioned factors are expected to have benefited Google’s Services segment’s performance in the second quarter.
The Zacks Consensus Estimate for Google Services revenue is pegged at $64.15 billion, reflecting growth of 2.1% from the year-ago reported figure.
Strength in Cloud & Other Bets to Benefit
Alphabet has been significantly gaining momentum in the highly competitive cloud market for a while on the back of its expanding cloud service portfolio and an increasing number of data centers.
The impacts of GOOGL’s go-to-market strategy and strengthening its cloud infrastructure and ecosystem are expected to get reflected in its second-quarter revenues. The solid adoption of Google Cloud Platform and Google Workspace is likely to have contributed well to the performance of the Google Cloud segment in the to-be-reported quarter.
The Zacks Consensus Estimate for Google Cloud revenues stands at $7.72 billion, indicating growth of 23% from the reported figure in the prior-year quarter.
This apart, Alphabet’s strengthening efforts toward bolstering its healthcare technology portfolio are expected to have driven growth in its Other Bets segment during the second quarter.
The Zacks Consensus Estimate for Other Bets revenues is pegged at $251 million, reflecting growth of 30% from the year-ago quarter’s reported figure.
What Our Model Says
Our proven model predicts an earnings beat for Alphabet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you will see below.
Alphabet has an Earnings ESP of +2.09% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies that too, per our model, have the right combination of elements to post an earnings beat in the soon-to-be-reported quarterly results.
Shopify (SHOP - Free Report) has an Earnings ESP of +86.34% and a Zacks Rank #1 at present.
Shopify is scheduled to release second-quarter 2023 results on Aug 2. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 6 cents per share. The company reported a loss of 3 cents per share in the year-ago quarter.
Meta Platforms (META - Free Report) has an Earnings ESP of +6.56% and a Zacks Rank #2 at present.
Meta is scheduled to release second-quarter 2023 results on Jul 26. The Zacks Consensus Estimate for META’s earnings is pegged at $2.85 per share, suggesting growth of 15.8% from the prior-year quarter’s reported figure.
Carrier Global (CARR - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
Carrier is set to report second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for CARR’s earnings is pegged at 76 cents per share, suggesting growth of 10.1% from the prior-year period’s reported figure.
Image: Bigstock
Alphabet (GOOGL) to Post Q2 Earnings: What's in the Offing?
Alphabet (GOOGL - Free Report) is scheduled to report second-quarter 2023 results on Jul 25.
For the quarter under review, the Zacks Consensus Estimate for revenues is pegged at $60.23 billion, indicating an improvement of 4.8% from the year-ago reported number.
The consensus mark for earnings is pegged at $1.32 per share, indicating 9.1% growth from the previous year’s reported figure. The figure has moved 0.7% downward over the past 30 days.
The company missed the Zacks Consensus Estimate in three of the trailing four quarters while surpassing the same once, delivering a negative earnings surprise of 4.4%, on average.
Alphabet Inc. Price and EPS Surprise
Alphabet Inc. price-eps-surprise | Alphabet Inc. Quote
Search, YouTube & Ad Efforts to Consider
Alphabet’s continued efforts toward innovation in AI techniques for the advancement of its search segment, which accounts for a major portion of its total revenues, are expected to have continued driving traffic on its platform in the to-be-reported quarter.
Its recent move to integrate generative AI technology into its search engine might have been a major positive. With the large language models-powered enhanced search results, Google is likely to have driven its search momentum in the second quarter. Language models like BERT and MUM, coupled with multi-search and visual exploration features, are expected to have continued improving the search results.
This apart, strength across Google Lens and Google Maps is expected to have contributed well to the second quarter’s Search performance.
The Zacks Consensus Estimate for Google Search & Other revenues is pegged at $41.8 billion, reflecting an increase of 2.6% from the year-ago quarter’s reported figure.
Stabilization in advertisers’ spend is expected to have benefited the advertising business, which has been performing sluggishly over the past few quarters. Strength in Automatically Created Assets and Performance Max is likely to have driven Google’s momentum among advertisers. The improving performance of YouTube ads might have been a positive.
However, softness in Network advertising might have been a major concern.
The consensus mark for Google advertising is pegged at $57 billion, reflecting growth of 1.3% from the reported figure in the prior-year quarter.
Coming to non-advertisement revenues of YouTube, strengthening user momentum in YouTube Shorts might have been a tailwind. Google’s growing efforts to bolster relationships with content creators are likely to have acted as a positive.
The introduction of major updates and various user-friendly features of YouTube Premium is likely to have bolstered the Premium subscriber base during the quarter under review. Also, solid momentum across YouTubeTV and YouTube Primetime Channels might have been another positive.
These factors might have driven growth in Google’s Other revenues, for which the consensus mark stands at $7.2 billion, reflecting growth of 10.4% from the year-ago reported figure.
The growing momentum across Android 13 and Android 12 is likely to have benefited Alphabet’s performance in the to-be-reported quarter.
All the abovementioned factors are expected to have benefited Google’s Services segment’s performance in the second quarter.
The Zacks Consensus Estimate for Google Services revenue is pegged at $64.15 billion, reflecting growth of 2.1% from the year-ago reported figure.
Strength in Cloud & Other Bets to Benefit
Alphabet has been significantly gaining momentum in the highly competitive cloud market for a while on the back of its expanding cloud service portfolio and an increasing number of data centers.
The impacts of GOOGL’s go-to-market strategy and strengthening its cloud infrastructure and ecosystem are expected to get reflected in its second-quarter revenues. The solid adoption of Google Cloud Platform and Google Workspace is likely to have contributed well to the performance of the Google Cloud segment in the to-be-reported quarter.
The Zacks Consensus Estimate for Google Cloud revenues stands at $7.72 billion, indicating growth of 23% from the reported figure in the prior-year quarter.
This apart, Alphabet’s strengthening efforts toward bolstering its healthcare technology portfolio are expected to have driven growth in its Other Bets segment during the second quarter.
The Zacks Consensus Estimate for Other Bets revenues is pegged at $251 million, reflecting growth of 30% from the year-ago quarter’s reported figure.
What Our Model Says
Our proven model predicts an earnings beat for Alphabet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you will see below.
Alphabet has an Earnings ESP of +2.09% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies that too, per our model, have the right combination of elements to post an earnings beat in the soon-to-be-reported quarterly results.
Shopify (SHOP - Free Report) has an Earnings ESP of +86.34% and a Zacks Rank #1 at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify is scheduled to release second-quarter 2023 results on Aug 2. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 6 cents per share. The company reported a loss of 3 cents per share in the year-ago quarter.
Meta Platforms (META - Free Report) has an Earnings ESP of +6.56% and a Zacks Rank #2 at present.
Meta is scheduled to release second-quarter 2023 results on Jul 26. The Zacks Consensus Estimate for META’s earnings is pegged at $2.85 per share, suggesting growth of 15.8% from the prior-year quarter’s reported figure.
Carrier Global (CARR - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
Carrier is set to report second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for CARR’s earnings is pegged at 76 cents per share, suggesting growth of 10.1% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.