Google (GOOG) – Q3 Earnings Preview

October 13, 2011

Google’s stock price (GOOG) has had large moves after the Q1 and Q2 earnings reports. Q1 the stock sold off because the growth rate of expenses appeared out of control and Larry Page spent about two minutes on the conference call. For the Q2 earnings report, revenue growth accelerated, expense were better controlled, and Larry Page stayed on the entire conference call and did a great job taking questions and elaborating on his vision for the company. After the Q2 earnings report the shares rallied 69 points from $528 to $597.

Heading into Q3 earnings tonight the shares are trading in the $550’s. There could be fast downside back to $500 or quick upside above $600 depending upon how the quarter goes. Here is what to look for:

Expectation ranges:

  • gross revenues: $9.0B to $9.4B
  • net revenues: $7.1B to $7.43B
  • TAC %: 75.0-76.0%
  • EBITDA: $3.85B – $4.0B
  • Pro-forma EPS: Consensus $8.76
  • Pro-forma EPS range: $8.50-$9.0

There will be considerable detail after the results and conference call posted on Crackerjack Finance:



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