Google reports Q2 earnings after the close. We’ll have live analysis starting at 4PM ET, so tune in to see how Google fared.Analysts have been slashing their estimates in the last few weeks. The primary culprit is changes in the foreign exchange rate, though the Nexus One failure also played a part. Google’s China mess isn’t helping things either.
Even with analysts slashing estimates, Mark Mahaney at Citi writes, “Based on extensive intra-quarter channel checks and our model sensitivity work, we believe Street Q2 EPS estimates could be at risk, in part because some Street estimates haven’t been adjusted for FX and reduced Nexus One revenue.”
The good news there is that expectations are very low. So even if Google just meets consensus, the stock might go up.
Fundamentally, Google needs to find its next growth engine. The company says that’s display advertising, so we’ll be looking to hear about the growth in that business.
Key consensus numbers:
- Q2 net revenue: $4.99 billion.
- Non-GAAP Operating Income: $2.71 billion.
- Non-GAAP EPS: $6.48.
- Beyond these numbers, we’ll be curious if Google updates the Android sales. Most recently it said it was activating 160,000 phones daily.
Here’s a great snapshot of what to expect from Citi’s Mark Mahaney. (Click here or on image to enlarge.)