Peter Kafka

Recent Posts by Peter Kafka

How Good Is Google’s Growth Story? Time to Find Out.

light-tunnelGoogle CEO Eric Schmidt couldn’t be any clearer: He’s been saying, over and over, that he thinks the recession is in his company’s rear-view mirror. And Wall Street has been listening: It has been steadily pushing up Google shares for months.

Now we get to find out just how good Google’s (GOOG) growth story is. Read three different analyst reports and you’ll get three different descriptions of Wall Street’s “consensus” estimates for the search giant’s Q3 numbers, out this afternoon. But Thomson Reuters thinks the Street expects earnings of $5.42 per share on revenue of $4.24, so we’ll go with that.

Here’s a more detailed breakdown of expectations, courtesy of Bernstein Research’s Jeffrey Lindsay. Note that per above, his description of consensus differs from the one at Thomson Reuters (click to enlarge):

google forecasts

More broadly, Wall Street expects to hear that U.S. ad dollars picked up in the last quarter, that international markets have as well, and that margins have held up due to cost-cutting, because Eric Schmidt has been saying all of those things out loud in recent days. Schmidt has also continued to talk up YouTube’s prospects for profits, so expect to hear about that this afternoon as well.


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The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald