Alphabet Inc. Poised for Strong Q4 Earnings Amid Vibrant Growth
With a staggering market cap of $2.4 trillion, Alphabet Inc. (GOOG) stands front and center in the technology sector, delivering a diverse range of services. The company offers web-based searches, advertisements, mapping services, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware items through its extensive subsidiaries. Investors are anticipating an important fiscal Q4 earnings announcement on Tuesday, February 4.
Positive Earnings Expectations for Q4
In the lead-up to this earnings report, analysts predict that Alphabet will post a profit of $2.12 per share, reflecting a significant 29.3% increase from $1.64 per share reported during the same quarter last year. The tech giant has maintained a solid pattern of exceeding Wall Street’s earnings expectations, consistently surpassing estimates for four consecutive quarters. Notably, in Q3, GOOG’s adjusted earnings per share (EPS) of $2.12 exceeded forecasts by an impressive 15.9%.
Forecast for Fiscal 2024 Shows Growth
Looking ahead, analysts project that Alphabet’s EPS for fiscal 2024 will reach $8.03, marking a 38.5% rise from $5.80 in fiscal 2023.
GOOG Outpaces Major Indices This Year
Over the past year, shares of GOOG have climbed by 34.3%, outperforming both the S&P 500 Index, which rose 21.8%, and the Communication Services Select Sector SPDR ETF Fund (XLC), which returned 30% during the same period.
Strong Performance Fuels Analyst Optimism
After reporting a better-than-expected Q3 net income of $2.12 per share and revenues of $88.3 billion on October 29, Alphabet’s shares surged by 2.9%. This revenue figure represented a 15% growth compared to the previous year, driven by a thriving cloud service business, strong core advertising revenues, and continued investment in artificial intelligence. Furthermore, the company’s efficiency improvements contributed to a remarkable 34% year-over-year increase in profit margins.
Wall Street’s analysts hold a positive view on GOOG’s stock performance, assigning it an overall “Strong Buy” rating. Out of 50 analysts monitoring the stock, 39 recommend a “Strong Buy,” three indicate a “Moderate Buy,” and eight suggest a “Hold.” This sentiment reflects a slight increase in bullishness compared to three months ago when 38 analysts recommended a “Strong Buy.”
The average price target for Alphabet stands at $212.90, suggesting a potential upside of 10.2% from current trading levels.
On the date of publication, Neharika Jain did not hold any positions in the securities mentioned herein. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy
here.
The views and opinions expressed herein belong to the author and do not necessarily represent the views of Nasdaq, Inc.
