Alphabet to report Q2 earnings after the bell

Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum annual meeting in Davos.

Fabrice Coffrini | AFP | Getty Images

Google parent-company Alphabet is set to report second quarter financials after the bell Thursday, and it’s the first full quarter since the Covid-19 pandemic hit. Executives predicted it would be “a difficult one.”

Here’s what Wall Street is expecting:

• Earnings: $8.21 per share, based on Refinitiv consensus estimates
• Revenue: $37.37 billion, as per Refinitiv
• YouTube advertising revenue: $3.78 billion, according to StreetAccount estimates
• Google Cloud revenue: $3.06 billion, as per StreetAccount
• Traffic acquisition costs (TAC): $6.67 billion, as per StreetAccount

The estimates predict a 4% revenue decline and a nearly 50% drop in EPS from a year ago, as the coronavirus pandemic continues to hurt the company’s core advertising business, particularly with regards to search and travel ads. eMarketer predicted that Google will see its first quarterly ad revenue dip and also predicts a 5.3% drop in US advertising revenue in 2020. 

In its Q1 earnings, Google chief financial officer Ruth Porat told analysts the company saw a dip in revenue in March when the pandemic picked up in the U.S., however shares spiked after hours on the report as executives painted a more optimistic view of future spending than investors had previously feared.