Back to top

Image: Bigstock

Wall Street's Insights Into Key Metrics Ahead of Alphabet (GOOGL) Q3 Earnings

Read MoreHide Full Article

Wall Street analysts expect Alphabet (GOOGL - Free Report) to post quarterly earnings of $1.83 per share in its upcoming report, which indicates a year-over-year increase of 18.1%. Revenues are expected to be $72.83 billion, up 13.7% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship 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 indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Alphabet metrics that are commonly monitored and projected by Wall Street analysts.

Analysts expect 'Revenues- Google properties' to come in at $57.74 billion. The estimate points to a change of +11.1% from the year-ago quarter.

The consensus estimate for 'Revenues- Google Cloud' stands at $10.91 billion. The estimate indicates a change of +29.7% from the prior-year quarter.

The combined assessment of analysts suggests that 'Revenues- YouTube ads' will likely reach $8.86 billion. The estimate suggests a change of +11.4% year over year.

According to the collective judgment of analysts, 'Revenues- Google advertising' should come in at $65.22 billion. The estimate indicates a year-over-year change of +9.4%.

Analysts' assessment points toward 'Revenues- Google Search & other' reaching $48.84 billion. The estimate points to a change of +10.9% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenues- Google Network' should arrive at $7.43 billion. The estimate points to a change of -3.1% from the year-ago quarter.

Analysts forecast 'Revenues- EMEA' to reach $24.42 billion. The estimate indicates a year-over-year change of +7.8%.

It is projected by analysts that the 'Revenues- United States' will reach $40.21 billion. The estimate suggests a change of +10.6% year over year.

The average prediction of analysts places 'Revenues- Other Americas (Canada and Latin America)' at $7.45 billion. The estimate indicates a year-over-year change of +63.6%.

Analysts predict that the 'Revenues- APAC' will reach $14.06 billion. The estimate indicates a change of +7.1% from the prior-year quarter.

The consensus among analysts is that 'Total TAC (traffic acquisition costs)' will reach $13.41 billion. Compared to the present estimate, the company reported $12.64 billion in the same quarter last year.

The collective assessment of analysts points to an estimated 'Headcount (Number of employees)' of 180,974. Compared to the current estimate, the company reported 182,381 in the same quarter of the previous year.

View all Key Company Metrics for Alphabet here>>>

Over the past month, Alphabet shares have recorded returns of +0.8% versus the Zacks S&P 500 composite's +1.5% change. Based on its Zacks Rank #2 (Buy), GOOGL will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alphabet Inc. (GOOGL) - free report >>

Published in