Alphabet to report third-quarter earnings after the bell

Google parent company Alphabet will report third-quarter earnings after the bell Monday.

Here's what analysts expect:

  • Earnings per share: $12.42 per share expected, per Refinitiv consensus estimates.
  • Revenue: $40.32 billion expected, per Refinitiv consensus estimates.
  • Traffic acquisition costs: $7.48 billion, according to FactSet.

Alphabet's last quarter looked great and analysts are expecting more of the same. In Q2, the company beat expectations, earning $14.21 per share on $38.94 billion. It also announced a repurchase of up to an additional $25 billion of its Class C stock.

Investors are looking for Alphabet's traffic acquisition costs (TAC) to near $7.5 billion. The metric represents the payments Google makes to companies like Apple for its search engine to be the default browser on their devices. It's a key figure that analysts and investors look at to assess the health of Google's business.

Google's "other revenue," which includes hardware like its Pixel phones and cloud products, is expected to reach $6.32 billion, according to Factset. The company earned $6.18 billion last quarter and $4.64 billion in last year's Q3.

CNBC confirmed earlier in the day that Alphabet made an offer to buy smartwatch company Fitbit, which would make Alphabet a player in the wearable fitness tracking space, competing against the likes of Apple.

Alphabet said its revenue from "other bets," which includes its subsidiaries outside of Google like the self-driving car company Waymo, was $162 million last quarter and $146 million in the year-ago quarter.

This is breaking news. Please check back for updates.

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