Unveiling AppLovin (APP) Q4 Outlook: Wall Street Estimates for Key Metrics

Analysts on Wall Street project that AppLovin (APP) will announce quarterly earnings of $1.28 per share in its forthcoming report, representing an increase of 161.2% year over year. Revenues are projected to reach $1.26 billion, increasing 32.3% from the same quarter last year.

The current level reflects an upward revision of 0.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific AppLovin metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Revenue- Software Platform' will likely reach $892.68 million. The estimate indicates a year-over-year change of +54.9%.

Analysts forecast 'Revenue- Apps' to reach $369.89 million. The estimate points to a change of -1.8% from the year-ago quarter.

Analysts' assessment points toward 'Revenue- In-App Purchase' reaching $248.50 million. The estimate indicates a year-over-year change of -3.2%.

Analysts predict that the 'Revenue- In-App Advertising' will reach $119.61 million. The estimate points to a change of -0.3% from the year-ago quarter.

The consensus among analysts is that 'Average Revenue Per Monthly Active Payer' will reach $51.84. The estimate compares to the year-ago value of $47.

The average prediction of analysts places 'Segment Adjusted EBITDA- Apps' at $76.11 million. Compared to the present estimate, the company reported $56.15 million in the same quarter last year.

Analysts expect 'Segment Adjusted EBITDA- Software Platform' to come in at $683.70 million. The estimate is in contrast to the year-ago figure of $420.01 million.

View all Key Company Metrics for AppLovin here>>>

Shares of AppLovin have demonstrated returns of +15.6% over the past month compared to the Zacks S&P 500 composite's +1.9% change. With a Zacks Rank #2 (Buy), APP is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AppLovin Corporation (APP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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