Google Inc. (NASDAQ: GOOGL) is expected to report earnings after the close on Thursday. The first thing we would warn investors of is that this marks the first post-split and dual-class earnings report. It is hard to know if the changes will have been entirely accounted for, but analysts often do not properly account for reorganizations immediately.
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This unknown over analysts’ estimates and a new reporting method makes us want to spend less time analyzing the Google of today versus the Google of yesterday. Our first thought is that Google’s earnings or revenues will have to be much higher or much lower than estimates for there to be any major move.
Google’s estimates are $6.26 earnings per share (EPS) and $15.6 billion in revenue.
UPDATE from WhisperNumber.com: Google’s whisper number is $6.32 EPS, showing strong confidence from investors. Whispers range from a low of $12.50 to a high of $13.24. The site’s email said:
Google has a 64% positive surprise history (having topped the whisper in 25 of the 39 earnings reports for which we have data). The overall average post earnings price move is very limited and “negative” (beat the whisper number and see weakness, miss and see weakness) when the company reports earnings.
Google shares are up 5% so far in 2014. Google does not offer up guidance, but its estimates for the coming quarter are $6.63 EPS and $16.37 billion in revenues.
Google’s stock chart from StockCharts.com shows that the $583.50 area the shares are in now is handily above long-term moving averages. Google’s 50-day moving average is at $564.83 and its 200-day moving average is down at $550.29.
We will be closely watching Google’s revenue growth, earnings growth, search dominance and advertisement spending. Perhaps Google’s next massive opportunity is that sub-$100 smartphone for the rest of the emerging markets not yet connected.
Google’s 52-week range is $421.91 to $615.05, and the consensus analyst price target for the stock is listed as just over $660. Until all the analysts have keyed in with updates, we will not be referencing that target price as we do in other stocks.
ALSO READ: Former Ford Chief Mulally Joins Google Board
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