What To Expect Ahead Of Alphabet Inc’s (GOOGL) Fourth Quarter Earnings: Top Analyst

RBC Capital top analyst Mark Mahaney weighed in today with his views on Alphabet Inc (NASDAQ:GOOGL), as the company is scheduled to report its fiscal fourth-quarter earnings results on Thursday, January 26th after the close.

The analyst expects gross revenue of $24.40 billion, net revenue of $19.78 billion, non-GAAP operating income of $7.66 billion, and non-GAAP EPS of $9.27. His gross and net revenue estimates are a bit below consensus (at $25.30B and $20.58B, respectively), as is his non-GAAP operating income and non-GAAP EPS estimates (at $8.25B and $9.62, respectively).

Mahaney noted, “Based on intra-quarter data points and our model sensitivity analysis, we believe Street estimates for Q4 are slightly aggressive on the top-line and on the bottom-line. We note that Google does hedge its FX exposure, tho the magnitude of recent currency moves has been unusual.”

In closing, Mahaney reiterates an Outperform rating on shares of Alphabet, with a price target of $1025, which represents a potential upside of 22% from where the stock is currently trading.

As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a yearly average return of 21.4% and a 71% success rate. Mahaney has a 15.5% average return when recommending GOOGL, and is ranked #2 out of 4361 analysts.

Out of the 26 analysts polled in the past 3 months, 25 rate Alphabet stock a Buy, while only 1 rates the stock a Hold. With a return potential of 14%, the stock’s consensus target price stands at $961.61.

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