A Look Ahead: Alphabet's Earnings Forecast

Alphabet (NASDAQ:GOOG) will release its quarterly earnings report on Thursday, 2025-04-24. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Alphabet to report an earnings per share (EPS) of $2.02.

Investors in Alphabet are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

The company's EPS beat by $0.02 in the last quarter, leading to a 6.94% drop in the share price on the following day.

Here's a look at Alphabet's past performance and the resulting price change:

Quarter Q4 2024 Q3 2024 Q2 2024 Q1 2024
EPS Estimate 2.13 1.85 1.85 1.51
EPS Actual 2.15 2.12 1.89 1.89
Price Change % -7.000000000000001% 3.0% -5.0% 10.0%

eps graph

Market Performance of Alphabet's Stock

Shares of Alphabet were trading at $153.9 as of April 22. Over the last 52-week period, shares are up 0.6%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Alphabet

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Alphabet.

The consensus rating for Alphabet is Outperform, based on 6 analyst ratings. With an average one-year price target of $205.5, there's a potential 33.53% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Meta Platforms, Reddit and Pinterest, three prominent industry players, offering insights into their relative performance expectations and market positioning.

  • Analysts currently favor an Outperform trajectory for Meta Platforms, with an average 1-year price target of $727.2, suggesting a potential 372.51% upside.
  • Analysts currently favor an Outperform trajectory for Reddit, with an average 1-year price target of $177.67, suggesting a potential 15.45% upside.
  • Analysts currently favor an Buy trajectory for Pinterest, with an average 1-year price target of $42.41, suggesting a potential 72.44% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Meta Platforms, Reddit and Pinterest are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Alphabet Outperform 11.77% $55.86B 8.30%
Meta Platforms Outperform 20.63% $39.55B 12.00%
Reddit Outperform 71.25% $395.86M 3.46%
Pinterest Buy 17.62% $957.17M 48.33%

Key Takeaway:

Alphabet ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Discovering Alphabet: A Closer Look

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

A Deep Dive into Alphabet's Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Alphabet showcased positive performance, achieving a revenue growth rate of 11.77% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Alphabet's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 27.51% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Alphabet's ROE stands out, surpassing industry averages. With an impressive ROE of 8.3%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Alphabet's ROA stands out, surpassing industry averages. With an impressive ROA of 6.03%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Alphabet's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.08.

To track all earnings releases for Alphabet visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Latest Ratings for GOOG

DateFirmActionFromTo
Apr 2025ScotiabankMaintainsSector OutperformSector Outperform
Apr 2025UBSMaintainsNeutralNeutral
Apr 2025KeybancMaintainsOverweightOverweight

View More Analyst Ratings for GOOG

View the Latest Analyst Ratings

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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