Google likely to show earnings gain

by Sean Patterson | Thursday, Jul 19, 2012 | 711 views

Google Inc is expected to post a double digit gains in both earnings and revenue for the 2nd quarter on Thursday afternoon, with eth first period of results from the acquisition of Motorola Mobility.

Investors have put an increased pressure on the stock after the reporting of the last earnings reports and shares have slid almost 7 % since mid-April on concerns regarding the new trends in the core advertising business of the firm.

After hitting a low point last month, the shares have picked up 4 % since then but are still ten per cent below the year-to date target.

Even though most of the investors are still bullish on the stock, a lot of people have concerns on 2 core areas which have pushed many on the sidelines including the acquisition of Motorola and the core advertising business of the company.

Market experts are expecting to see a recovery in the ad pricing along with a more transparency around Motorola in the present report.

The Wall Street has projected Google to report  adjusted earnings of $10.05 per share as compared to the figure of $8.74 per share for the same period last year.

Revenues, excluding the costs of traffic acquisitions, are likely to come in around the value of $8.4 billion, which doesn’t include the contribution from Motorola. In the second quarter of last year, Google had reported a revenue of $6.92 billion.

With a bigger slowdown coming from the international markets, there is expected to a be a slow down in the US revenues on a sequential basis. However, it was added that the concerns over losing out on the revenue growth as a result of user shifts to mobile devices was not the biggest problem.

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