Google, Microsoft and Intel report earnings on Thursday.



NEW YORK (TheStreet) -- Google(:GOOG), Microsoft(:MSFT) and Intel(:INTC), which are all reporting earnings on Thursday, may be able to shake off the fears in Europe, according to analysts.

With worries about European debt seemingly on investors minds every day, companies that generate a significant portion of their revenue from outside the U.S. will need to show they are still growing or their shares could give up the gains seen so far in 2012.

The three tech giants report earnings after the close of trading on Thursday.

Sanford Bernstein analyst Mark Moerdler doesn't believe that Europe will affect Microsoft's earnings, especially with SAP(:SAP) pre-announcing better-than-expected earnings and guidance.

"The read-through to Microsoft from SAP is that enterprise sales are strong, and the Oracle miss is more of an internal issue than a large overall market issue," Moerdler said.

He noted that SAP is very large in Europe, and there was no mention of it in the pre-announcement.

"In terms of Europe for Microsoft overall, I don't see that there are any signs of a European issue," Moerdler said. He rates shares overweight with a $33 price target.

Microsoft warned last week that PC sales would come in lighter than the negative 1% analysts had been expecting.

Analysts expect Microsoft to report earnings of 77 cents a share.

Intel is another name that should be able to escape the wrath of Europe's debt, according to analysts.

Europe has been weak for a while, noted Morningstar analyst Andy Ng. He believes that Intel has taken this into account, and that it shouldn't be a problem for the chipmaker when taking into account emerging markets, which are growing sharply.

"Most of the growth in the PC market is coming from emerging markets, like China and Brazil. Also, secular demand for server processors to build out data centers and the cloud infrastructure has been another tailwind for the firm. Taken together, these should help offset the effects of Europe," Ng said in an email.

Ng has a fair value of $26 on Intel, around 3% higher than shares are currently trading.

Intel recently lowered its fourth-quarter revenue forecast, based on weakness seen from the floods in Thailand.

The Santa Clara, Calif.-based chipmaker now expects fourth-quarter revenue between $13.4 billion and $14 billion, compared to its prior forecast of $14.2 billion to $15.2 billion, and gross margins are expected to come in at 64.5%, lower than the 65% it had been expecting.

Analysts expect Intel to report revenue of $13.7 billion.

Google also has significant exposure to Europe, with Piper Jaffray believing it to be around 35% to 40%.

Analyst Gene Munster said that he expects Europe to be Google's "biggest wild card" for the fourth quarter, but that strength in the U.S. and the rest of the world should be an offset.

"According to a report from IgnitionOne, a large SEM, the company suggests its European client search spend increased 14% y/y in Q4 from 20% in Q3. We note this metric would not include Google's efforts in display, thus it has historically lagged Google's reported growth," Munster wrote in his latest research report. Munster has an overweight rating and a $720 price target on Google.

Raymond James analyst Aaron Kessler noted in his research report that despite potential headwinds from Europe, it expects strong click growth (29% year over year), and modest cost per click declines. Kessler rates Google overweight, and raised his price target to $770 from $700.

Analysts expect Google to earn $9.03 in the upcoming quarter.

Interested in more on Google? See TheStreet Ratings' report card for this stock.

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--Written by Chris Ciaccia in New York

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