Google Inc (GOOG) Earnings Preview

GoogleWDnetStudio / Pixabay

Google Inc (NASDAQ:GOOG) will report its second quarter earnings on Thursday, July 18, 2013. Analysts are projecting that Google will post earnings of $9.04 per share, increase of 3 percent from the corresponding quarter of the previous year earnings of $8.81 per share.Google Inc (GOOG) Earnings Preview

Expectations from Google

Analysts have increased their average estimates from $9.03 past month, but it is less than the estimate of three months before.  Google is expected to report earnings of $38.52 per share for the fiscal 2013. Revenue for the quarter is estimated to rise 18 percent to 14.42 billion, versus previous year’s revenue of $12.21 billion. For the full year, revenue is projected to come in at $60.20 billion.

Google Inc (NASDAQ:GOOG) has been reporting profit for straight eight years, and in the last four years the average growth in the profit has been 4 percent year over year. In the last quarter, net income increased 20 percent year-over-year and in the fourth Quarter profit grew by 7 percent.

Majority of analysts have a “Buy” on Google stock.

Diversifying revenue streams

Google Inc (NASDAQ:GOOG), whose core business is advertising, has been trying to diversify its revenues streams. Search engine giant launched a series of services and apps like Google Maps and Google+. Additionally, it rolled music subscription service called All Access, which will be a challenge to other streaming service like Pandora and Spotify. Apart from product and services, Google bought four companies, this year, among which the most talked about was a social map company Waze.

Investors and analysts will be concentrating on core business of advertising and also on Motorola Mobility Unit.

As per the estimates, mobile search ads contribute 32 percent of Google’s total value and PC search ads add 33 percent. Google will derive most of its profit from Standard PC search along with a surge in revenues from search ads.

Youtube will also contribute to the profits of Google Inc (NASDAQ:GOOG) as viewers of online video are increasing and according to emarketer, online video ads revenue in the United States will rise from $2.93 billion in 2012 to $9 billion by 2017.

All eyes on Motorola mobility unit

One segment that is bringing down the profit of Google Inc (NASDAQ:GOOG) is Motorola Mobility division, which has been reporting operational loss since the takeover by Google last year. Motorola has unveiled a new phone, recently, and will soon be available in the market.

As per the figures of research firm IDS, Smartphone sales will rise by 32 percent y-o-y in 2013. Motorola has is looking forward to Moto X smartphone to r- establish itself in the Smartphone market.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

Be the first to comment on "Google Inc (GOOG) Earnings Preview"

Leave a comment