Alphabet (GOOG, GOOGL) is set to report Q4 results after the bell with a conference call slated for 4:30pm ET. 

Cap IQ Consensus estimates Q4 EPS of $10.07 (vs. $9.36 in 4Q16), w/revs of $31.88 bln (+22.3% y/y). 

Investors will be paying close attention to revenue growth as Alphabet has posted 6 straight quarters of 20%+ revenue growth.

Shares of GOOG are up 46.5% in the last year compared to the Nasdaq's gain of 35%. Alphabet currently has a market capitalization of $817 bln, with a TTM P/E of 39.51x, with a TEV/EBITDA of 20.9x. 

Q3 Recap

  • Reports Q3 earnings of $9.57 per share, $1.17 better than the Capital IQ Consensus of $8.40; revenues rose 23.7% year/year to $27.77 bln vs the $27.17 bln Capital IQ Consensus.
  • Aggregate paid clicks rose 47% YoY and 6% sequentially.
  • Paid clicks on Google properties rose 55% YoY and 7% sequentially.
  • Aggregate cost per click fell 18% YoY and rose 1% sequentially.
  • Operating margin improved to 28% vs 26% in prior year period.

Analysts

  • Needham raised their GOOG tgt to $1350 from $1150. They expect Alphabet to at least meet overall 4Q17 expectations. However, Google's Website revenue could post upside given the growth in mobile, Shopping Ads, seasonal holiday demand, and improved campaign efficiency. (January 30). 
  • Target raised to $1250 from $1175 at Goldman (January 25). 
  • Target raised to $1280 from $1150 at KeyBanc Capital Mkts (January 19). 
  • Target raised to $1300 from $1150 at Piper Jaffray (January 12).

Options

Based on GOOG options, the current implied volatility stands at ~ 28%, which is 129% higher than historical volatility (over the past 30 days). 

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