Why Alphabet (GOOG) is Poised to Beat Earnings Estimates Again

Earnings Performance - Alphabet Inc (GOOG) has consistently surpassed earnings estimates in the last two quarters, with an average surprise of 9% [1] - In the most recent quarter, Alphabet reported earnings of $2 12 per share, beating the estimate of $1 83 per share by 15 85% [2] - In the previous quarter, the company reported earnings of $1 89 per share, exceeding the consensus estimate of $1 85 per share by 2 16% [2] Earnings ESP and Zacks Rank - Alphabet currently has a positive Earnings ESP of +5 96%, indicating analysts' bullish outlook on its near-term earnings potential [6] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [6] - Stocks with a positive Earnings ESP and a Zacks Rank 3 or better have historically produced a positive surprise nearly 70% of the time [4] Analyst Estimates and Predictive Power - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the former reflecting the latest analyst revisions before earnings releases [5] - A negative Earnings ESP reduces the predictive power of the metric but does not necessarily indicate an earnings miss [7] - Companies may still see stock price increases even if they miss consensus EPS estimates, highlighting the importance of considering multiple factors beyond earnings surprises [7]