Alphabet (GOOG): Raising Revs On Hardware Launches - Evercore

Evercore ISI analyst, Ken Sena, reiterated his Buy rating on shares of Alphabet (NASDAQ: GOOG) and raised 4Q revenue (x-TAC) 2% to $20.6bn (19.2% y/y, 21.3% y/y x-FX) on higher Google Play, Pixel and Google Home holiday sales. Offsetting this increase is a 204bps headwind from FX, due to USD appreciation against the GPB and EUR as a result of EU / Brexit pressures.

The fourth quearter saw the launch of a Google’s strongest hardware lineup in the past couple years with the release of the Pixel phone, the first one designed and marketed by Google, and the Google Home, a home assistant speaker. For the quarter, we estimate $808mm in Google Branded Hardware revenue (35% y/y and 30% of Core Other Revenue), with Pixel and Google Home contributing roughly half of the revenue, based on Verizon activation data from Wave7 for Pixel and Google Home download data from Voice Labs for Google Home.

No change to the price target of $1,001.

For an analyst ratings summary and ratings history on Alphabet click here. For more ratings news on Alphabet click here.

Shares of Alphabet closed at $806.36 yesterday.

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