Alphabet Inc. (NASDAQ: GOOG) has confirmed the release date for its Q3 2021 earnings will be on Tuesday, October 26, 2021.
What to look for
In Q2, the company's revenue and earnings comfortably topped estimated and the rebounding internet search and YouTube ad revenue driving the exceptional performance. With COVID-19 vaccinations expanding in Q3, the company is expected to report substantial digital ad revenue. In addition, the Consumer hardware, cloud computing, and digital ad revenue, which make a bigger portion of the company's revenue, will continue impacting revenue results in Q3.
Earnings: Stockearning’s Estimated EPS for Q3 2021 is $23.72 representing a 45% YoY Increase. Historical EPS Performance shows that the company has topped EPS estimate eight times (66%) and missed twice (16%) in the last 12 quarters. During the second quarter, the company reported EPS of $27.26 relative to estimates of $19.89 per share.
Revenue: In Q2 ended June 30, 2021, the company reported revenue of $61.9 billion representing growth of 62%, beating estimates of $56 billion in revenue. YouTube revenue was up 84% to $7 billion, while Google cloud reported a 54% YoY revenue increase to $4.6%. Additionally, the company reported accelerated operating income growth YoY, reflecting growth in operations.
Stock movement: Alphabet has been UP 0.8% since the last earnings release. In the previous 46 quarters, the stock has been UP 23 times following earnings release. So, the historical price reaction suggests a 50% probability of the stock going UP after releasing its Q3 2021 earnings. According to the Stockearning algorithm, the predicted stock move on the first day is 5%, while the predicted move on the seventh day is 6%.
What analysts are saying
JPMorgan’s Doug Anmuth sees Alphabet as the most liked, least discussed, and best owned mega-cap internet stick. Anmuth told investors in a research note that the overall investor sentiment is positive with limited debates. The analyst maintained a "Buy" rating on the stock with a price target of $3,250, but he prefers Netflix, Amazon, and Facebook stock.
Related News
Visa Inc. (NYSE: V) Earnings Expectations, Fiscal Q4 2021 Revenue To Grow 27.07%
Intel Corporation (NASDAQ: INTC) Earnings Expectation, 51% Chance For Share Price To Go UP