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Compared to Estimates, Alphabet (GOOGL) Q2 Earnings: A Look at Key Metrics

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For the quarter ended June 2023, Alphabet (GOOGL - Free Report) reported revenue of $62.07 billion, up 8% over the same period last year. EPS came in at $1.44, compared to $1.21 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $60.24 billion, representing a surprise of +3.03%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $1.32.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Alphabet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total traffic acquisition costs: $12.54 billion versus $12.21 billion estimated by 11 analysts on average.
  • Revenue- EMEA (Europe, Middle East, and Africa): $22.29 billion versus $21.78 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.6% change.
  • Revenue- US- Total: $35.07 billion versus the three-analyst average estimate of $33.84 billion. The reported number represents a year-over-year change of +7.2%.
  • Revenue- APAC (Asia-Pacific): $12.73 billion versus the three-analyst average estimate of $12.15 billion. The reported number represents a year-over-year change of +8.7%.
  • Revenue- Other Americas (Canada and Latin America): $4.51 billion versus $4.51 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.
  • Revenue- YouTube ads: $7.67 billion compared to the $7.41 billion average estimate based on nine analysts. The reported number represents a change of +4.4% year over year.
  • Revenue- Google Cloud: $8.03 billion versus $7.72 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +28% change.
  • Revenue- Google Advertising- Total: $58.14 billion compared to the $56.97 billion average estimate based on nine analysts. The reported number represents a change of +3.3% year over year.
  • Revenue- Google Search & other: $42.63 billion versus $41.75 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
  • Revenue- Google Network: $7.85 billion versus the nine-analyst average estimate of $7.86 billion. The reported number represents a year-over-year change of -5%.
  • Revenue- Other Bets revenues: $285 million compared to the $255.66 million average estimate based on eight analysts. The reported number represents a change of +47.7% year over year.
  • Revenue- Google other: $8.14 billion versus $7.25 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +24.3% change.
View all Key Company Metrics for Alphabet here>>>

Shares of Alphabet have returned +2.7% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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