AppLovin (APP) to Report Q3 Earnings: What's in the Cards?
AppLovin Corporation APP is scheduled to report its third-quarter 2023 results on Nov 8 after market close.
The company has a disappointing earnings surprise history. It missed the Zacks Consensus Estimate in three of the trailing four quarters and surpassed on one instance, delivering an average earnings surprise of negative 19.6%.
Q3 Expectations
The Zacks Consensus Estimate for AppLovin’s revenues in the to-be-reported quarter is pegged at $796.38 million, indicating an 11.7% year-over-year increase. The top line is likely to have reaped the benefits of technology upgradation and the launch of the AXON 2.0 engine.
AppLovin Corporation Price and EPS Surprise
AppLovin Corporation price-eps-surprise | AppLovin Corporation Quote
The consensus estimate for the bottom line in the to-be-reported quarter is 27 cents per share, indicating more than 100% growth from the year-ago reported figure. Operating leverage in the Software Platform segment is likely to have contributed to such an increase in the bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for APP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
APP has an Earnings ESP of -7.41% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
National CineMedia (NCMI) currently has a Zacks Rank of 2.
The company’s revenues are expected to increase 12% from the year-ago figure and the bottom line is expected to indicate an 89% increase from the prior-year figure.
NCMI has an average surprise of 18.1%. The company has an Earnings ESP of +4.94% and is expected to release its third-quarter earnings on Nov 7.
Gartner IT holds a Zacks Rank of 3 and has beaten the Zacks Consensus Estimate in all four quarters, with an average surprise of 32.6%. The company’s revenues are expected to increase 4.5% from the year-ago figure while the bottom line is expected to decline 22.8% from the prior-year figure.
IT has an Earnings ESP of +4.30%. The company is scheduled to release its third-quarter earnings on Nov 3.
Duolingo DUOL currently holds a Zacks Rank of 3.
The company’s revenues are expected to increase 36.8% from the year-ago figure and the bottom line is expected to indicate an 82.6% increase from the prior-year figure.
DUOL has beaten the Zacks Consensus Estimate in the past four quarters with an average surprise of 69.5%. The company has an Earnings ESP of +35.9%. APTV is expected to release its third-quarter earnings on Nov 7.
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Gartner, Inc. (IT) : Free Stock Analysis Report
National CineMedia, Inc. (NCMI) : Free Stock Analysis Report
AppLovin Corporation (APP) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
