Alphabet reports earnings after the bell on Thursday, when investors will be able to query executives on competition, costs and regulatory scrutiny.
– Adjusted EPS: $8.33 per share expected by a Thomson Reuters consensus estimate
– Revenue: $27.2 billion expected by a Thomson Reuters consensus estimate
– TAC: $5.24 billion expected by StreetAccount
Google-parent Alphabet has seen Class A shares rise about 25 percent this year as advertisers have continued to lean heavily on search advertising and YouTube. Apple also said this quarter that Google would become the default web search option for Siri on iOS.
But a growing share of ads moving to mobile and programmatic formats has been putting a bit of pressure on Google’s profit margins over the past year.
While Alphabet’s Google business primarily makes money through advertising, it also contains Google Shopping, Maps, YouTube, Android, Chrome, Google Play, virtual reality and cloud services. Google launched its Pixel 2 phone this fall and has expanded options for Google Home and Google earbuds.
Alphabet’s moonshot “other bets” include Waymo’s self-driving cars, Google’s start-up investing arms, Verily life sciences research and Nest smart-home devices. Chief Financial Officer Ruth Porat has pushed Alphabet engineers to push toward achievable projects — right now, the “other bets” mainly make money through Google’s Fiber internet sales, Nest products and Verily licensing. CapitalG is leading an investment round in Lyft.
Google’s quarterly results come as technology companies are expected to testify on Capitol Hill next week about the role of Russian political advertising in the 2016 election. That’s only one of the kerfuffles that Google has had with lawmakers this year. In Europe, Google’s Shopping division may have to shift focus to deal with a record-breaking antitrust fine.
This is a breaking news story. Please check back for updates.
Source: Tech CNBC
Google-parent Alphabet reports earnings after the bell