Duolingo, Inc. (DUOL) Tops Q3 Earnings and Revenue Estimates

Core Insights - Duolingo, Inc. reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of$0.36 per share, and showing significant growth from $0.06 per share a year ago, resulting in an earnings surprise of 36.11$192.59 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.08% and increasing from $137.62 million year-over-year [2] - Duolingo has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Duolingo's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is$0.46 on revenues of $201.42 million, and for the current fiscal year, it is$1.87 on revenues of $736.1 million [7] Industry Context - The Technology Services industry, to which Duolingo belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]