Alphabet Estimates Point to Strong Sales, Uneven Earnings Outlook

Zacks’ consensus estimate for Alphabet’s current-quarter earnings rose 0.9% over the past 30 days. The forecast stands at $2.95 per share, which would be 2.8% above the year-earlier quarter.

The outlook differs across fiscal years. Zacks estimates earnings of $20.55 per share for the current fiscal year, up 90.1% from the prior year, and $14.82 for the next fiscal year, down 27.9% from the expected current-year result. Those estimates rose 0.3% and 0.5%, respectively, over the past month.

Zacks expects current-quarter revenue of $111.36 billion, a 27.3% year-over-year increase. Its sales estimates for the current and next fiscal years are $433.8 billion and $548.69 billion, each representing 26.5% growth.

In the last reported quarter, Alphabet posted revenue of $103.62 billion, up 26.8% year over year, and earnings per share of $9.11, compared with $2.31 a year earlier. Revenue exceeded Zacks’ consensus estimate of $101.28 billion by 2.31%, while earnings beat its estimate by 216.32%.

Zacks said Alphabet beat consensus earnings and revenue estimates in each of the past four quarters. Its shares returned 1.5% over the past month, compared with a 0.6% gain for the Zacks S&P 500 composite and a 0.5% rise for the internet-services industry.