Alphabet 2Q earnings: Here’s what to expect

A big week for tech earnings gets underway after the closing bell Monday when Google parent company Alphabet unveils its second-quarter results.

Analysts expect the tech giant to report profits per share of $9.59, on revenue of $32.17 billion in the three months ending in June. In the same quarter last year, Alphabet reported earnings of $5.01 per share on revenue of $26 billion.

In the same quarter last year, Alphabet reported earnings of $8.90 per share, excluding a $2.7 billion regulatory fine the European Union imposed on the tech giant.

EUROPEAN UNION FINE

The European Commission fined Google $5 billion last week for its "illegal practices" of forcing Android apps onto its smartphone customers. Regulators said Google engaged in three separate types of practices, all of which were aimed at bolstering its already strong position in general Internet search. The commission said Alphabet must end its current conduct within the next 90 days or it will face penalty payments of up to 5% of the average daily worldwide turnover of the company.

Despite the hefty penalty, the fine is less than 1% of the company’s market capitalization, which is about $830 billion. Google said it would appeal the ruling.

The penalty from the European Commission topped a previous record fine of $2.7 billion the company was dealt in 2017 after EU regulators said Google violated antitrust rules for online shopping practices.

“Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors,” Commissioner Margrethe Vestager said at the time of the fine.

Other tech giants Amazon and Facebook will report quarterly results later in the week.