Alphabet earnings: what to look for from GOOGL

What happened

Alphabet will report results this Wednesday after the market closes. Last quarter it beat analysts' revenue expectations with revenues of $119.8 billion, up 24.2% year on year, and also beat earnings-per-share estimates. This quarter, the market expects revenue to grow 24.9% year on year.

Confirmed

Global impact / market context

Revenue growth is expected to speed up to 24.9% from 15.9% a year earlier. If Alphabet meets that, it would show its online advertising business is still expanding quickly, which supports profit and cash available for future spending, buybacks, or dividends.

Analyst inference

Analysts have largely kept their estimates unchanged over the last 30 days, suggesting they expect steady results. Alphabet rarely misses Wall Street's revenue estimates, so investor attention is likely to focus on whether actual growth matches the 24.9% expectation rather than on a surprise miss.

Analyst inference

What to watch

1. Watch whether reported revenue grows 24.9% year on year, matching the market expectation, compared with the 15.9% increase recorded in the same quarter last year. Confirmed
2. The article suggests watching whether Alphabet continues its pattern of beating revenue estimates, since it rarely misses Wall Street's revenue estimates, which would signal advertising demand remains strong. Proposed
3. Watch earnings per share after last quarter's impressive beat, because profit per sale and cost control would show whether growth is translating into bottom-line results for investors. Analyst inference

Evidence

• stockstory.org