Alphabet, better known as Google (GOOG/GOOGL), will report third quarter results this afternoon.

S&P Capital IQ Consensus calls for EPS down 3% to $12.71 with revenue up 19% to $40.17 bln. The digital advertising giant has exceeded adjusted EPS estimates five quarters in a row.

Last quarter, Google delivered the acceleration in revenue growth that investors were looking for. CFO Ruth Porat cited innovation in its ad business, including applying machine learning (adding efficiency) to the user and advertiser experience. She conveyed confidence about the company's opportunity set, noting that quarterly growth will vary based on testing new products and features -- the same fairly vague reason given for the disappointing slowdown in the first quarter.

Alphabet remains focused on investing in growth yet the company also sees buying back its stock as an effective use of capital. GOOG added $25BLN to its share repurchase program, the fourth increase since 2015.

TECHS:

GOOGL trades at ~12x EV/EBITDA, the stock is trading on par with the S&P 500, despite superior growth, dominant market positions, and enviable secular tailwinds. Google is vulnerable to regulators in the US as the DOJ investigates antitrust matters in the technology sector.

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