Alphabet (GOOGL, GOOG) is set to report Q3 earnings tonight after the close with a conference call to follow at 4:30pm ET. GOOGL reports results on its website shortly after the opening bell.
Current Capital IQ consensus stands at EPS of $8.40 on Revenue of $27.16 bln.
There has been plenty of concern that the FAANG names have run the course and the group will be under immense pressure to continue to post strong quarters.
- Revenue Growth- Five straight quarters of 20%+ revenue growth but comps are getting tougher.
- Operating Margins- Came in at 16% last quarter but that also included $2.74 bln fine from the EU regarding display and ranking of shopping search results.
- Aggregate Clicks Paid- Q2 came in at 52%; Q1 +44%; Q4 +36%, Q3 +33%; Q2 +29%.
- Paid Click on Google Properties +61%
- Paid Clicks on Google Network Member +9%
- Aggregate cost per click- Q2 saw a decline of -23%; Q1 -19%; Q4 -15%, Q3 -11%; Q2 -7%,
- CPC on Google Properties -26%
- CPC on Google Network Members properties -11%
- TAC- Increased 28% y/y in Q3, the highest increase in nine years.