Alphabet (GOOGL) earnings Q4 2019

Google CEO Sundar Pichai speaks on stage during the annual Google I/O developers conference in Mountain View, California, May 8, 2018.

Stephen Lam | Reuters

Google parent company Alphabet is set to report earnings after the bell Monday.

Here’s what analysts expect for the company’s fourth quarter of the fiscal 2019 year:

  • Earnings: $12.53 per share, per Refinitiv consensus estimates.
  • Revenue: $46.94 billion, per Refinitiv.
  • Traffic acquisition costs: $8.50 billion, per StreetAccount estimates.

Alphabet’s shown a mixed bag of results over the last few quarters.

This time last year, the company showed its first signs of a slowing advertising business after reporting its fourth quarter earnings for fiscal 2018. Then, in the spring, it closed its worst post-earnings day since April 2010 after reporting sluggish advertising numbers. The stock dropped 7.5%, shaving more than $67 billion from its market cap. In the third quarter, the company’s stock fell as much as 4% because it missed Wall’s Street’s expectations for earnings per share numbers by more than 20 percent.

More recently, the company’s stock performance has picked up after the promotion of Google CEO Sundar Pichai to take over the top spot as Alphabet CEO. Last month, it became the fourth U.S. company in history to reach a trillion-dollar market cap.

The biggest news of the quarter concerned this leadership change, as founders Larry Page and Sergey Brin stepped down from their roles as CEO and President, handing over the reins to Pichai. Chief Legal officer David Drummond, an early Google executive who has been the subject of a misconduct investigation, also retired at the end of January.

Google faces antitrust probes from the Justice Department and a coalition of 50 attorneys general across the country. Its YouTube subsidiary last year paid a $170 million settlement to the Federal Trade Commission over claims that it violated child privacy laws.

Google Cloud, Alphabet’s hopeful future cash cow, made a series of acquisitions during the quarter, rounding out a year since CEO Thomas Kurian took the helm in early 2019. Under Kurian, Google has purchased at least five companies including Elastifile in June, CloudSimple in November, and Appsheet in early January. His largest was data analytics company Looker, which it bought for $2.6 billion last summer.

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