Alphabet, Google (GOOG/GOOGL), will report second quarter results this afternoon. Conference call is scheduled for 4:30pm EST.

S&P Capital IQ Consensus calls for EPS down 3% to $11.38 (excluding a $5 bln fine from the European Commission last year) with revenue up 17% to $38.21 bln.

GOOGL has exceeded adjusted EPS estimates four quarters in a row.

GOOGL closed at an all-time high heading into first quarter results before falling 8% after missing revenue estimates by a wide margin. 

Revenue growth of 17% was the slowest in four years. 

Google search market share remains above 90% in the US. That gives Google ample room for power in the digital advertising market, where its policies have a big impact on smaller internet competitors. Android is the leading mobile operating system globally and YouTube is similarly dominant in online video.

The Google Cloud Platform is a distant third to Amazon's AWS and Microsoft's Azure.

Waymo is believed to have a lead in autonomous driving. 


Analysts expect FY19 EPS up 12% with revenue up 17%.

With a market cap of over $780 bln, Alphabet trades at ~12x EV/EBITDA estimates, a discount to Facebook. The weekly options are pricing in a ~4.5% move in the stock tomorrow.


🧨🧨🧨🧨🧨Alphabet beats by $2.83, beats on revs; Announces $25bln share repurchase on Class C capital stock 🧨🧨🧨🧨🧨

  • Reports Q2 (Jun) earnings of $14.21 per share, excluding non-recurring items, $2.83 better than the S&P Capital IQ Consensus of $11.38; revenues rose 19.3% year/year to $38.94 bln vs the $38.21 bln S&P Capital IQ Consensus.

  • Operating Margin 24% compared to 9% in prior year (EU fine)

  • Effective Tax Rate 18% compared to 24% in prior year.

  • TAC 69% of revenue compared to 71% in prior year.

  • Paid Clicks on Google properties +6% yr/yr

  • Cpst-per-click on Google Properties (1%) compared to (11) in prior year.

  • On July 24, 2019, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $25.0 billion of its Class C capital stock. The repurchase is expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.

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