Google parent Alphabet Inc (NASDAQ:GOOG) will post better than forecast financials when it reports on its second quarter today, that’s the view of Wedbush analyst Scott Devitt.
Ad spending in Google’s core Search business will be a driver to a performance that Wedbush predicts will see group revenue rise 13% year-over-year and slightly ahead of the market’s current consensus.
Google Search ad revenue will come in at $48.1 billion, the analyst predicted in a preview note.
“We are increasing our Google Search estimate for 2Q and now expect growth of 12.8% from 12% previously,” Devitt said.
“We expect a more modest sequential deceleration in Search growth and have increased conviction in spending intent for the full year, supported by our survey results, broadly positive data points from agencies in recent months.”
Wedbush has an ‘Outperform’ rating for Alphabet stock with a $205 12-month price target suggesting material upside to the current share price of around $179.
Alphabet reports its second-quarter earnings on 23 July, after the market close.
Current market consensus (according to Zacks) sees the ‘big tech’ firm reporting earnings per share of $1.85 and revenue of $70.6 billion for the three-month period ended 30 June.
Shares of Alphabet rose heading into its quarterly report, adding 0.7% at about $185 in early trade on Tuesday.
- Updated with share price movement -