Alphabet GOOGL is set to report fourth-quarter 2024 results on Feb. 4.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
For fourth-quarter 2024, the Zacks Consensus Estimate for earnings is pegged at $2.12 per share, unchanged over the past 30 days and indicates 29.27% year-over-year growth.
The consensus mark for fourth-quarter revenues is pegged at $81.38 billion, indicating growth of 12.52% from the year-ago quarter’s reported figure.
Alphabet Inc. price-eps-surprise | Alphabet Inc. Quote
Alphabet has an impressive earnings surprise history. GOOGL’s earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.84%.
Let’s see how things have shaped up for the upcoming announcement:
The search giant’s to-be-reported quarterly results are expected to benefit from Android’s strength and solid momentum in search and cloud businesses. Expanding generative AI (Gen AI) capabilities are likely to have been a key catalyst. These factors are expected to have more than offset concerns related to increasing regulatory headwinds.
Alphabet has been cashing in on the increasing demand for Large Language Models (LLMs) with its most powerful AI model called Gemini.
Google’s Vertex AI, which enables developers to train, tune, augment and deploy applications using Gen AI models, is expected to have helped expand its clientele. Google’s launch of an enterprise-focused AI code completion and assistance tool called Gemini Code Assist is noteworthy.
These tools are likely to have contributed well to top-line growth in the to-be-reported quarter.
GOOGL continues to invest in state-of-the-art infrastructure to support its AI efforts globally. It is leveraging AI to improve the coding process, and more than 25% of all new code at Google is currently generated by AI.
The integration of Gen AI technology into the search engine is benefiting Google Search. LLMs, coupled with multi-search and visual exploration features, are continuously improving the search results.
New AI-powered enhancements, such as AI Overview, Circle to Search and advanced features in Lens, are improving user experience. AI Overview currently reaches more than 1 billion users monthly, and engagement levels are quite strong. The integration of ads within AI Overviews bodes well for Alphabet’s monetization efforts.
Circle to Search is now available on more than 150 million Android devices, with people using it to shop, translate text and learn more about the world around them. Lens has become the fastest-growing query type due to its ability to help in product discovery and shopping.
Alphabet is leveraging AI and Gen AI to boost Pixel’s features. The devices run on Google Tensor G4 chips, which help bring the Gemini Nano with Multimodality, Google’s latest on-device AI model.
Alphabet’s strength in the mobile search category on the back of mobile-friendly algorithms, robust product listings and flight search capabilities is a plus.
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