Reuters: Technology News: Google says Wall Street estimates need adjusting

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Google says Wall Street estimates need adjusting Jan 18th 2013, 18:52 Tweet Share this Email Print Related News Intel's weak outlook, spending hikes unnerve Wall Street Thu, Jan 17 2013 Goldman boosts returns to shareholders through layoffs Wed, Jan 16 2013 Facebook search to generate revenue, no rival to Google: analysts Wed, Jan 16 2013 Facebook rolls out friends-based search product Tue, Jan 15 2013 UPDATE 4-Facebook rolls out friends-based search product Tue, Jan 15 2013 Analysis & Opinion Saudi clerics protest against appointing women to advisory body In search of Google's dark side An illustration picture shows a Google logo with two one Euro coins, taken in Munich January 15, 2013. Credit: Reuters/Michael Dalder By Alexei Oreskovic SAN FRANCISCO | Fri Jan 18, 2013 1:52pm EST SAN FRANCISCO (Reuters) - Google Inc issued a rare advisory to Wall Street on Friday that analyst estimates for its fourth quarter financial results are flawed. 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. "As of this writing, a majority of Wall Street analysts who cover Google have not reflected the Home business as discontinued operations in their estimates," Callinicos wrote. The discrepancy means the fourth-quarter net revenue that Google reports on Tuesday could appear to be less than the $12.34 billion average that analysts polled by Thomson Reuters I/B/E/S are expecting. Raymond James analyst Aaron Kessler says his fourth-quarter net revenue estimate includes nearly $900 million from the Motorola Home business. "They're saying that the headline number is going to be less than what most analysts have for Q4," said Kessler. The advisory is a rare move for Google, which does not provide financial forecasts and typically has limited interactions with analysts. The company has in the past provided accounting advisories to analysts about the Motorola Mobility business, which Google acquired for $12.5 billion in May. Google bought Motorola Mobility primarily for its large portfolio of communications patents and its mobile phone business. In December, Google agreed to sell the Motorola Home television set-top box business to Arris Group Inc for $2.35 billion in cash and stock. Analysts expect Google to report adjusted earnings of $10.56 per share for the fourth quarter. "It's a little surprising that they're doing this the Friday before the report," said Kessler. "They should have put it out a week ago if they wanted analysts to change their numbers." (Reporting By Alexei Oreskovic. Editing by Andre Grenon) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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