Google Warns Investors Before Earnings Release

Google Compute EngineGoogle (NASDAQ:GOOG) will announce its fourth-quarter results after the bell on Tuesday, and expectations appear increasingly bearish. Shares sweat off nearly $30 last week following a blog post from Brent Callinicos, who is vice president, treasurer, and chief accountant at Google, that argued analyst expectations might not be in line with the reality.

Callinicos┬áspells out that Google’s pending sale of Motorola Home, the division that makes set-top TV boxes, classifies the unit as a discontinued operation, removing it from fourth-quarter results. “While this is a standard accounting treatment,” said Callinicos, “people who follow our company may not be fully aware of how it impacts our financial reporting. For example, 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.”

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Google’s chief accountant is probably worried that Google’s earnings will appear weaker than they actually are if compared against unrealistic expectations. The usual result is selling pressure as investors re-consider their valuation of the company. Understandably, Google, which is already shedding dollars ahead of its release, wants to minimize any disappointment…

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