Already today, in the late evening hours, we will know the financial results of another technological giant from Wall Street - Alphabet , which is the operator of i.a. Google and YouTube services. The results for the previous, third quarter of last year, did not impress and turned out to be noticeably lower than analysts' expectations. Alphabet 's revenue growth then fell to its lowest level since 2013. What can we expect from the publication of the report for the last quarter and the entire year 2022? What are the expectations of the technological giant?

Summary:

• analysts expect earnings per share in the fourth quarter of $1.18
• estimated revenue is $76.07 billion, up just 1% year-on-year
• however, in the last quarter of 2022, significant drops in the dollar quotation may work in favor of the company
• in pre- session trading, Alphabet 's quotations increase by more than 1% (price above 100 USD)

Alphabet results for 2022

Analysts' expectations for Google's parent company are not too high - the market consensus assumes an increase in revenues to USD 76.07 billion , i.e. 1% compared to the fourth quarter of 2021. Estimated earnings per share (EPS) Alphabet traded at $1.18, down from $1.53 a year earlier (EPS was $30.69 then, while Alphabet did a 20:1 stock split last July ).

In pre-market trading , Alphabet's stock is up over 1% and is trading above $100. As a reminder - throughout 2022, the company behind Google recorded a decrease in the share price by less than 40%, but in January, Alphabet 's shares recorded an increase of over 10%.

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Alpahet last week announced a reduction of more than 6% of the company's full-time jobs, which means the layoffs of more than 12,000 employees . The decision was justified by the fact that in previous years Google recorded above-average growth dynamics, which is impossible to maintain in the current economic reality. New employees were hired in a different economic environment, which is now much less friendly to technology companies. Google joined companies such as Meta Platforms , Microsoft and Amazon with job cuts .

When will we know the Google results?

Alphabet will publish financial statements for the fourth quarter and full year 2022 after Thursday's trading session on February 2 at 2 p.m. 22 Polish time.

It is worth recalling that the technology concern, which is the operator of, among others, Google and YouTube services , in the previous quarter (Q3 2022) fell below analysts' expectations , both in terms of revenue and profitability.

In the third quarter of 2022 Alphabet achieved sales revenue of USD 69.09 billion against expectations of over USD 70.5 billion. Revenues were higher than those in Q3 2021 (USD 65.12 billion), but only by 6%. For comparison, in the third quarter of 2021, the dynamics of revenue growth exceeded 40%.

Third-quarter net income was also lower than forecast at $13.91 billion, with earnings per share of $1.06. Analysts had expected an EPS of $1.25. For comparison, in the third quarter of 2021, Alphabet had a net profit of just under $19 billion, which translated into an EPS of $1.40.

At that time, the company explained the below-consensus results with a decrease in advertising revenue and lower marketing expenditures on the part of advertisers, which was particularly visible in the results of YouTube itself - advertising revenue slightly exceeded USD 7 billion, which meant a 2% year-on-year decrease, while the market consensus assumed an increase of 3% on an annual basis.

Alphabet's total ad revenue was $54.48 billion in the quarter, up from $53.13 billion a year earlier.

The result above expectations was recorded only by Google Cloud services - revenues in the third quarter amounted to USD 6.87 billion, compared to the expected USD 6.69 billion and USD 4.99 billion achieved a year earlier.