Google (Nasdaq:GOOG) in a rare move issued a chilling statement that most analysts had it wrong. Google’s real numbers are coming out Tuesday.
It appears that most analysts have not adjusted their estimates to reflect the pending $2.35-billion sale of the Motorola Home business. It is no secret. So whats up with the analysts.
Under US Accounting Rules the business must be shown separately. Most analysts are including the numbers.
So where is the fail. The sale is an announced deal. The accounting rules should be well understood but clearly are not. Management rarely speaks to the street about its earnings. But this time it could see the train wreck coming and felt compelled to yell danger danger.
The sell side analysts as a herd missed the point. So before they stampeded off the cliff management issued a public service announcement warning of the carnage. Management was under no obligation to do so.
The sell side analysts missed the point and shame on them. The conference call will be hilarious as everyone tippy toes around the mass incompetence.