Google Earnings Release: On Friday, Google Inc. (NASDAQ:GOOG) did something that you don’t see very often. The search engine powerhouse issued an advisory to Wall Street, getting word out that analyst estimates for fourth quarter financial results were flawed.
Before we take a closer look at what Google had to say about this on its investors relations page, let’s see what a recent article by Reuters had to say:
“The world’s No.1 search engine, which reports its quarterly results on Tuesday, said most analysts have not adjusted their estimates to reflect the pending $2.35 billion sale of the Motorola Home business.”
“The business must be presented separately from the results of Google’s continuing operations under U.S. accounting rules, Google Treasurer Brent Callinicos wrote in a post on Google’s investor relations Web page on Friday.”
Why is this so rare, you may be wondering? According to the same article by Reuters, Google Inc (NASDAQ:GOOG) is not in the habit of providing financial forecasts. Along with this, they have distanced the company from analysts with limited interaction over the years.
For an inside look at this situation, Raymond James analyst Aaron Kessler was interviewed by Reuters for the article:
“Raymond James analyst Aaron Kessler says his fourth-quarter net revenue estimate includes nearly $900 million from the Motorola Home business.”
Kessler was quoted as saying, “They’re saying that the headline number is going to be less than what most analysts have for Q4.”
Now that you have an idea of what is going on and how outsiders perceive this situation, let’s dive into the finer details of the official release from Google Inc (NASDAQ:GOOG) VP, Treasurer and Chief Accountant Brent Callinicos: