What to Expect When Alphabet Reports After the Close

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Alphabet Inc. (NASDAQ: GOOGL) is scheduled to release its most recent quarterly results after the markets close on Monday. Thomson Reuters has consensus estimates calling for $9.35 in earnings per share (EPS) on $30.36 billion in revenue. The same period of last year reportedly had $7.73 in EPS on $24.75 billion in revenue.

Earlier this quarter, Alphabet made a huge step forward in terms of its renewable energy mission. Google’s Senior Vice President for Technical Infrastructure, Urs Hölzle, announced in early April that Google’s total purchase of renewable energy exceeded the amount of electricity used by all of its operations around the world.

Over the course of 2017, across the globe, for every kilowatt-hour of electricity Google consumed, it purchased a kilowatt-hour of renewable energy from a wind or solar farm that was built specifically for Google. This makes it the first public company of its size to have achieved this feat.

Also as we all know, Alphabet dominates the online advertising market. Recently eMarketer issued a report that said more than a quarter of all digital ad revenues (27.9%) this year will find their way to into the coffers of Alphabet and Facebook. Alphabet’s Google is expected to see ad revenues of $39.92 billion in 2018, while Facebook’s total is forecast at $21 billion.

For Google, that total represents year-over-year growth of 14.5%, while Facebook’s growth rate is an even higher 16.9%.

Over the past 52 weeks, Alphabet has outperformed the broad markets, with its stock up over 27%. However, in just 2018 alone, its stock is up only 2.5%.

Ahead of the report, a few analysts weighed in on the stock:

  • Credit Suisse has a Buy rating with a $1,400 price target.
  • JPMorgan has a Buy rating. Morgan Stanley has a Buy rating.
  • Pivotal Research has a Hold rating with a $1,040 price target.
  • Stifel has a Hold rating with a $1,150 price target.
  • Piper Jaffray has an Overweight rating.
  • Robert Baird has a Buy rating.

Shares of Alphabet were last seen at $1,074.41, with a consensus analyst price target of $1,327.00 and a 52-week range of $849.86 to $1,186.89.

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