Google’s “messy” results likley to confuse

by Darcie | Thursday, Jul 12, 2012 | 440 views

Google Inc. will be reporting the earnings for the second quarter next week, but there is likely to be a fair amount of confusion among the investors who would be trying to suss out the core business of the firm from some other factors- inclusive of the highly controversial acquisition of Motorola Mobility recently. The second quarter results will be reported by Google on the afternoon of July 19, and it will be the first period marking the financial contributions to Motorola, a $12.5 billion acquisition deal which finally saw a closing in May 22.

As per the consensus on Wall Street, Google will be reporting the net revenue of $8.4 billion for the second quarter, minus the effects coming out of TAC , or traffic acquisition costs. As compared to the last year, this would represent a top-line growth of 21 per cent. Analysts have projected $10.12 adjusted earnings per share for the 2nd quarter as compared to the $8.74 in the 2nd quarter of last year.

Most of the market experts have not updated their estimates on Google’s earnings after the closing of Motorola deal . Although a few have, but most of them are using pre-merger estimates for consensus.

As a result of this the reported net revenue for the quarter is likely to  be much higher than the consensus target- although the firm has promised on breaking out the data which includes the revenue and operating income or losses that have come out of the Motorola deal and its 2 segments, the wireless device business and the cable set-top box unit.

Most of the market experts are of the opinion that this quarter is going to be a messy one for Google.

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