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Google: ‘Majority of Wall Street analysts’ estimates too high


Google just alerted Wall Street analysts that their Q4 2012 earnings estimates do not accurately reflect the yet-to-be-reported results.

In other words, their numbers are too high.

The company gave a sneak peek at the upcoming results on its Investors Page this morning. Google’s earnings call is scheduled for next week, but it apparently wants to warn folks before hopes get too inflated that it will not include numbers from Motorola’s set-top box division.

The Internet Giant acquired Motorola last year and has previously said it plans to sell the Home business. While this is not new information, Wall Street is apparently in the dark on the situation. Google explained:

 In short, financial results from Motorola Home will be presented as a separate line item in our 2012 consolidated statements of income.  While this is a standard accounting treatment (more details below), 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.

As noted by AllThingsD, Google clarified that Q4 net revenue is roughly $1 billion less than the $12.4 billion expected by analysts. The consensus EPS of $10.58 is also too much–by about 40 cents.

Google is set to release its Q4 2012 earnings on Jan. 22.

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