Later today, Alphabet will be announcing their earnings for the fourth quarter of 2016, as well as their earnings for the entire year. Investors will be looking at some of the changes that the company made in 2016, particularly the new hardware that Google started selling (Pixel, Pixel XL, Google WiFi, Google Home, etc) as well as the new ad formats that Google debuted last year. Of course, moonshots will also be taking center stage, as will YouTube's performance.
Wall Street expects Alphabet to announce adjusted earnings of $9.64 per share on revenue of about $25.23 billion. That would be an increase for Alphabet, compared to the $8.67 per share on revenue of $21.33 billion that they reported for Q4 of 2015. Alphabet is expected to also announce how their new ad formats has helped them improve their ad business. This is important for Alphabet and their investors seeing as ads represent around 95% of the revenue for Alphabet. According to JMP Securities, they believe that promoted pins on Google Maps, and other new options could help the company continue their double-digit revenue growth in 2017.
Now when it comes to hardware, this will be the first time that Google has sold their own hardware, and not hardware that they made with a partner. According to analysts reports, the new Made by Google hardware has been selling quite well, so we should see just how well it has sold for Google later today. But, keep in mind that they most likely won't be announcing how many units they've sold. They have never announced numbers in that respect before, and it's likely not going to happen now. With YouTube, the company has been pushing their YouTube Red subscription quite heavily in recent months, and they have also added even more ads to the platform. Which should bring in more revenue for YouTube, a platform that is still surprisingly seeing growth. With more people watching and watching more videos.
Alphabet will be announcing their earnings at about 4:30PM EST (or 1:30PM PST) today, with their earnings call being live streamed over YouTube – however the live stream will be audio only, as it typically is.