Home Technology Google Inc (GOOG) Earnings Preview

Google Inc (GOOG) Earnings Preview

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

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.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Aman Jain
Personal Finance Writer

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.