Can Alphabet (GOOGL) Keep the Earnings Surprise Streak Alive?

Core Insights - Alphabet (GOOGL) is well-positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 9% in the last two quarters [1][3] Earnings Performance - In the most recent quarter, Alphabet reported earnings of $2.12 per share, exceeding the expected $1.83 per share by 15.85% [2] - For the previous quarter, the company reported $1.89 per share against an expectation of $1.85 per share, resulting in a surprise of 2.16% [2] Earnings Estimates and Predictions - Analysts have been increasing their earnings estimates for Alphabet, contributing to a positive Earnings ESP of +5.96%, indicating bullish sentiment regarding its near-term earnings potential [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - This means that out of 10 stocks with this combination, approximately seven could beat the consensus estimate [4] Importance of Earnings ESP - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5] - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the probability of successful predictions [8]