In the build up to Google parent Alphabet Inc (NASDAQ:GOOG)’s third-quarter trading statement on Tuesday October 25, Zacks Investment Research maintains a consensus revenues estimate of US$58.35bn, indicating an 8.8% improvement year on year.
“Alphabet’s robust Search segment continues to be the key catalyst for its top-line growth. Its expanding ad services portfolio, a strong search engine and improving search results are likely to have benefited its third-quarter performance,” said Zacks.
Earnings, however, are expected to fall 10.7% to US$1.25 per share.
Alphabet benefits from an outstanding cash position- well over US$100bn according to the last trading statement.
But it will be of interest to see whether foreign exchange headwinds and global inflation worries manage to chip away at the position.
Additionally, capital expenditure and litigation costs are expected to hit the bottom line.