Google reports Q2 after the close (GOOG). We’ll be providing live analysis and commentary starting at 4PM ET. Hope you’ll join us!
The stock has had a nice run on chatter about the global recovery. We’ve also heard anecdotal talk of strength in performance-based online ads. Given this, Google likely has to beat the Street on the revenue to drive the stock higher. An “in-line” quarter will likely be perceived as a disappointment, as will an earnings “beat” driven by cost savings.
Key Stats (Consensus):
- Net Revenue: $4.05 billion
- Non-GAAP Operating Income: $2.1 billion
- EPS: $5.05
- Paid Click Growth: +13%
- CAPEX: $430 million
Here’s Citi analyst Mark Mahaney’s excellent preview and “cheat sheet.”
We are looking for $3,968MM in net revenue (+2% Y/Y and down 3% Q/Q) and $4.85
in non-GAAP EPS (excluding stock-based compensation). This compares with
consensus expectations of $4,047MM and $5.05. Based on extensive intra-
quarter channel checks, our model sensitivity work, our FX analysis, and our
Macro read, we believe Street Q2 estimates are reasonable.
In Addition To P&L Results, Key Areas To Focus On — GOOG will clearly provide a fundamentals read for Internet advertising stocks and a sentiment read for all Internet stocks.
Specific non-P&L issues of interest include:
1) Insight into how various verticals and geographies have been trending;
2) Paid click and CPC growth;
3) Discussion on whether marketers are increasing budgets for Q3 and Q4;
4) International traction and the impact from FX and Hedging activities;
5) Cost cutting measures within the company and its ability
to maintain/grow margins;
6) Thoughts on MSFT’s new search engine, Bing, and Google’s new Chrome O.S.,
7) An update on Display (YouTube and DoubleClick) and Mobile advertising.
Business Insider Emails & Alerts
Site highlights each day to your inbox.