GOOGLE EARNINGS: Here's What We're Looking For When It Reports This Afternoon (GOOG)

April 16, 2014 at 11:38 AM EDT

Google will report its Q1 2014 quarterly earnings after the market closes at 4 PM eastern.

We'll be covering it live.

Revenue: $15.52 billion

EPS: $6.40

This year, Google will sell off its handset business to Lenovo for $2.9 billion. Google's Motorola Mobility unit has been a perpetual money-loser for Google. But Google will remain the vast majority of its Motorola Mobility patent portfolio, which should make investors happy.

Google's stock is currently up 8% today ahead of its earnings and is trading at 457.39.

Overall, it should be a solid quarter for Google. Analysts are expecting Google's "Enhanced Campaigns" program to drive revenue across its mobile and desktop ad divisions. They also expect YouTube to be a key contributor to Google's revenue growth as it carves off more network TV ad dollars.

Analysts are particularly interested in three things:

PLAs (product listing ads): Instead of links, Google allows marketers to place their products as photos. Analysts want to see growth in this area.
YouTube: YouTube recently invested heavily into TV advertising.
CPC and Paid Click growth: Analysts at Jefferies Equity Research want to see paid click growth of at least 28% year over year. For cost per click, analysts expect a roughly 10% decline year over year, but don't see that as a huge concern as long as paid clicks continue to grow.

In light of Google's acquisition of drone manufacturer Titan Aerospace, we expect analysts to ask some questions about Google's plan for drones. We also expect questions regarding Google Glass, which went on sale yesterday to the public for one day only.