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Technology Stocks : Google - Moderated - Information and discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (332)7/19/2007 4:02:03 PM
From: Lizzie Tudor  Read Replies (1) | Respond to of 348
GOOG Google Earnings Preview (549.33 -0.08) -Update-

Google (GOOG) is set to report earnings after the close with expectations extremely higher for the co to blow out numbers for the sixth straight quarter. Co has been beating bottom line expectations by ~$0.27 on average over the last five quarters. Revenue growth has been falling steadily but not enough to alarm investors sliding to just below 65% in Q1. Shares have responded to the positive earnings report and now the stock is trading close to all time highs. Of course when one set the bar so high it can be difficult to keep up with expectations so it will certainly be interesting to see if GOOG is able to deliver to a crowd just waiting for the first slip up from this Wall Street darling. Stock was selling off earlier today on chatter that earnings may disappoint expectations and that an important executive would be leaving the team but we believe that was just speculation and did not have a basis behind the rumors. Items of interest on the call include: 1) Acquisitions: Co has been extremely busy with acquisitions, making eight alone this quarter. Their DoubleClick acquisition has been of particular interest to people and yesterday co was actually called in by the DoJ to discuss the acquisition. There are some analysts who are expecting some of these acquisitions to be dilutive so this could weigh in on EPS; 2) International Growth: Co's International growth has been trending slightly below domestic growth. We have been hearing that one of the places the co could surprise is based on stronger than expected European revenue which, given the FX tailwinds some other companies have seen, should provide a nice boost to results. On the flip side costs to ramp up international business could potentially hurt the bottom line; 3) Lost ad selling days at eBay: Co lost 10 ad selling days at eBay which could slow down results. We would note not a lot but when co's expectations are so high every little piece counts; 4) Guidance: Or lack thereof, recall co does not provide guidance to the delight of analysts everywhere; 5) Market Share: comScore data has shown that co did lose slight market share to MSFT last quarter. Any commentary regarding this will be of interest to investors; 6) YouTube: Everyone will be paying attention to how this acquisition is proceeding and the effect it is having on the co and the strategy going forward; 7) CapEx Spend: As noted in international trading a heavy spend hear could provide some headwind to the bottom line; 8) Reuters vs First Call rev Consensus: First Call excludes TAC while Reuters includes TAC. We would be very careful when comparing to consensus as this could cause a knee jerk reaction that opens up a golden opportunity... GOOG Consensus: Q2 Reuters EPS $3.59, revs $3.87 bln, FC revs $2.68; Q3 Reuters EPS $3.75, revs $4.10 bln, FC $2.87 bln; Y08 EPS $15.23, revs $16.29 bln, FC revs $11.39 bln... GOOG Guidance: CO DOES NOT PROVIDE GUIDANCE... Levels of Interest: GOOG Chart for levels of Interest