Why Duolingo (DUOL) is Poised to Beat Earnings Estimates Again

Core Insights - Duolingo, Inc. has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 51.96% [1][2] - The company reported earnings of $0.91 per share in the last quarter, surpassing the Zacks Consensus Estimate of $0.55 per share by 65.45% [2] - Duolingo's positive Earnings ESP of +3.55% indicates growing analyst optimism regarding its near-term earnings potential, combined with a Zacks Rank of 2 (Buy) [5][8] Earnings Performance - In the previous quarter, Duolingo was expected to earn $0.52 per share but delivered $0.72 per share, resulting in a surprise of 38.46% [2] - The company's earnings surprise history has led to higher estimates, enhancing its potential for future earnings beats [5] Earnings ESP and Predictions - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - Duolingo's next earnings report is anticipated on November 5, 2025, and the combination of its positive Earnings ESP and favorable Zacks Rank suggests a potential for another earnings beat [8]