Earnings Preview: Outlook mixed on Google ahead of Q4 report

theflyonthewall.com

Google (GOOG) is expected to report Q4 earnings after the market close on Tuesday, January 22 with a conference call scheduled for 4:30 pm ET. Google is a global technology company that focuses on Internet search, cloud computing, and advertising technologies. EXPECTATIONS: Analysts are looking for EPS of $10.58 on revenue of $12.33B. The consensus range is $8.78-$11.91 for EPS, and $11.35B-$12.77B for revenue, according to First Call. LAST QUARTER: Google reported Q3 EPS $9.03 against estimates of $10.65 on revenue of $11.33B against estimates of $11.87B. The company also reported Q3 Motorola revenue $2.58B and Paid clicks up 33%. The company also reported over 400M users for Google+ and cited 'tremendous growth' for the Android operating system. During the call, Google reported Q3 free cash flow of $3.1B and called its cash position a "real strategic asset." STREET RESEARCH: Google was downgraded at Oppenheimer and Hilliard Lyons, while its price target was lowered at Citigroup. Other analysts, however, cited Google's valuation and attractive core business. Barron's, for example, said it is time to buy Google's shares due to lowered expectations. Pacific Crest also said the company's 2013 outlook is positive, but warned that Q4 could miss on EPS due to hardware sales. PRICE ACTION: After dropping over 8% the day it reported its Q3 results, Google has risen slightly over the last three months, up over 1% to ~$705.

View Comments (0)