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Alphabet (GOOGL) to Report Q3 Earnings: What's in the Cards?
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Alphabet (GOOGL - Free Report) is scheduled to report third-quarter 2023 results on Oct 24.
For the quarter under review, the Zacks Consensus Estimate for revenues is pegged at $63.13 billion, indicating an improvement of 10.2% from the year-ago reported number.
The consensus mark for earnings is pegged at $1.45, indicating 36.8% growth from the previous year’s reported figure. The figure has been stable over the past 30 days.
The company missed the Zacks Consensus Estimate in two of the trailing four quarters, delivering a negative earnings surprise of 0.9%, on average.
Alphabet’s continued efforts toward innovation in AI techniques for the advancement of its search business are expected to have continued aiding its search revenues in the third quarter.
The new Search Generative Experience, which leverages generative AI technology to make search results more natural and intuitive, is likely to have contributed well. With the large language model-powered enhanced search results, Google is expected to have driven its search momentum during the quarter under review.
Large language models, coupled with multi-search and visual exploration features, are expected to have continued improving the search results.
Improving features across Google Lens and Google Maps are expected to have benefited the search traffic.
The Zacks Consensus Estimate for Google Search & Other revenues is pegged at $43.04 billion, reflecting an increase of 8.9% from the year-ago quarter’s reported figure.
This apart, Google’s growing advertisement offerings infused with generative AI technology are expected to have contributed well to Google’s advertising revenues during the third quarter.
Stabilization in advertisers’ spending is expected to have benefited the advertising business.
The consensus mark for Google advertising is pegged at $58.94 billion, reflecting growth of 8.2% 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.
Solid momentum across YouTubeTV and YouTube Primetime Channels and major updates in YouTube Premium might have been another positive.
These factors might have driven growth in Google’s Other revenues, for which the consensus mark is pinned at $7.96 billion, reflecting growth of 15.5% from the year-ago reported figure.
The growing momentum across Android 13 and Pixel devices 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 third quarter.
The Zacks Consensus Estimate for Google Services revenues is pegged at $66.74 billion, reflecting growth of 8.7% 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 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.
Its strengthening generative AI-backed cloud offerings are expected to have driven Google’s momentum among cloud customers.
The Zacks Consensus Estimate for Google Cloud revenues is pinned at $8.54 billion, indicating growth of 24.3% 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 third quarter.
The Zacks Consensus Estimate for Other Bets revenues is pegged at $284 million, reflecting growth of 35.9% 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 +0.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GOOGL carries a Zacks Rank #3 at present.
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.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
Carrier Global (CARR - Free Report) has an Earnings ESP of +4.16% and a Zacks Rank #3 at present.
Carrier is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CARR’s earnings is pegged at 78 cents per share, suggesting growth of 11.4% from the prior-year period’s reported figure.
Itron (ITRI - Free Report) has an Earnings ESP of +14.39% and flaunts a Zacks Rank #1 at present.
Itron is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 51 cents per share, suggesting a jump of 121.7% from the prior-year quarter.
Image: Bigstock
Alphabet (GOOGL) to Report Q3 Earnings: What's in the Cards?
Alphabet (GOOGL - Free Report) is scheduled to report third-quarter 2023 results on Oct 24.
For the quarter under review, the Zacks Consensus Estimate for revenues is pegged at $63.13 billion, indicating an improvement of 10.2% from the year-ago reported number.
The consensus mark for earnings is pegged at $1.45, indicating 36.8% growth from the previous year’s reported figure. The figure has been stable over the past 30 days.
The company missed the Zacks Consensus Estimate in two of the trailing four quarters, delivering a negative earnings surprise of 0.9%, 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 business are expected to have continued aiding its search revenues in the third quarter.
The new Search Generative Experience, which leverages generative AI technology to make search results more natural and intuitive, is likely to have contributed well. With the large language model-powered enhanced search results, Google is expected to have driven its search momentum during the quarter under review.
Large language models, coupled with multi-search and visual exploration features, are expected to have continued improving the search results.
Improving features across Google Lens and Google Maps are expected to have benefited the search traffic.
The Zacks Consensus Estimate for Google Search & Other revenues is pegged at $43.04 billion, reflecting an increase of 8.9% from the year-ago quarter’s reported figure.
This apart, Google’s growing advertisement offerings infused with generative AI technology are expected to have contributed well to Google’s advertising revenues during the third quarter.
Stabilization in advertisers’ spending is expected to have benefited the advertising business.
The consensus mark for Google advertising is pegged at $58.94 billion, reflecting growth of 8.2% 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.
Solid momentum across YouTubeTV and YouTube Primetime Channels and major updates in YouTube Premium might have been another positive.
These factors might have driven growth in Google’s Other revenues, for which the consensus mark is pinned at $7.96 billion, reflecting growth of 15.5% from the year-ago reported figure.
The growing momentum across Android 13 and Pixel devices 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 third quarter.
The Zacks Consensus Estimate for Google Services revenues is pegged at $66.74 billion, reflecting growth of 8.7% 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 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.
Its strengthening generative AI-backed cloud offerings are expected to have driven Google’s momentum among cloud customers.
The Zacks Consensus Estimate for Google Cloud revenues is pinned at $8.54 billion, indicating growth of 24.3% 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 third quarter.
The Zacks Consensus Estimate for Other Bets revenues is pegged at $284 million, reflecting growth of 35.9% 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 +0.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
GOOGL carries a Zacks Rank #3 at present.
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.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
Carrier Global (CARR - Free Report) has an Earnings ESP of +4.16% and a Zacks Rank #3 at present.
Carrier is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CARR’s earnings is pegged at 78 cents per share, suggesting growth of 11.4% from the prior-year period’s reported figure.
Itron (ITRI - Free Report) has an Earnings ESP of +14.39% and flaunts a Zacks Rank #1 at present.
Itron is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 51 cents per share, suggesting a jump of 121.7% from the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.