Alphabet GOOGL is expected to release its fourth-quarter 2023 results on Jan 30.
Analysts anticipate a 12% uptick in revenues to $70.71 billion, compared to the previous year’s figure. Earnings are estimated at $1.60, suggesting a 52.4% surge from the previous year’s results and remains steady over the past month.
While the company outperformed estimates in three of the last four quarters, investors are mindful of a consistent earnings surprise rate of 4.62%, on average.
The Search and Ad Landscape
Amid a rapidly evolving digital ecosystem, Alphabet’s steadfast commitment to innovation within its search and ad segments may prop up its Q4 performance. Notably, advancements in artificial intelligence (AI) techniques have likely bolstered Google’s search segment, while efforts to enhance the advertising business is expected to drive growth.
Cloud Computing and Emerging Ventures
The burgeoning cloud services and other ventures are crucial to Alphabet’s diversified revenue streams. Expansion and enhancement of the Google Cloud Platform, coupled with the company’s foray into healthcare technology, are anticipated to fuel growth in these areas.
Our Forecast and Peer Analysis
According to our proprietary model, Alphabet is likely to exceed earnings expectations this quarter, reflected in a positive Earnings ESP and its current Zacks Rank #3. Additionally, similar positive indicators are observed in the expected performance of the peers like Apple (AAPL), A. O. Smith (AOS), and Fortive (FTV).
With a myriad of contributing factors, investors should brace themselves for potential market ripples following Alphabet’s upcoming earnings report.