After releasing its popular new Pixel smartphone and seeing its shares of shares him more than $800 this month, Google parent company Alphabet Inc. (GOOGL) is expected to reveal steady growth in its third quarter earnings on Thursday.
Investors surveyed by FactSet expected the company’s C class (GOOG) earnings per share (EPS) to grow slightly to $8.63 from $8.42 in the second quarter and $7.35 for the third quarter of 2015.
Citing growth in YouTube's popularity and mobile use of its search engine, Alphabet beat analysts’ expectations with its second quarter earnings release in July, with C class earnings per share (EPS) of $8.42 on revenues of $21.5 billion over forecasts $8.04 per share on $20.76 billion.
“Video is a huge component of digital content, and YouTube continues to shine,” Alphabet Chief Executive Officer Sundar Pichai said during a conference call following the July earnings report.
Pinchai pointed to last quarter’s growth in the Android operating system.
“Android is thriving,” Pinchai said, adding that the past year saw 65 billion app installments.
But while the software’s growth numbers were beating those of Apple’s iOS operating system, Google wasn’t much of a competitor with the iPhone maker when it came to hardware. That could change with the Pixel, as some see it as Alphabet’s attempt to go head-to-head with Steve Jobs’ brainchild.
Still, while Google may be dominating the internet search and video world and becoming a major player in the smartphone industry, its other projects, like Google X’s self-driving car, may face an uphill battle when competing with Uber and Tesla Motors. The Elon Musk-led auto company plans to roll out its Enhanced Autopilot software in December if it gains regulatory approval, and Uber already tested self-driving fleet in Pittsburgh last month. At Google X, meanwhile, the project’s leader announced that he would be stepping down in August, seven and a half years after he joined the team’s push to produce safe driverless cars.