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S&P 500 (NYSE:SPY) component Google Inc. (NASDAQ:GOOG) reported higher profit for the second quarter as revenue showed growth. Google provides search and advertising services and makes this information freely available to anyone with an Internet connection.
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Google Inc. Earnings Cheat Sheet
Results: Net income for the internet services rose to $2.79 billion ($8.42 per share) vs. $2.5 billion ($7.68 per share) in the same quarter a year earlier. This marks a rise of 11.2% from the year-earlier quarter.
Revenue: Rose 35.3% to $12.21 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Google Inc. fell short of the mean analyst estimate of $8.76 per share. It beat the average revenue estimate of $8.41 billion.
Quoting Management: “Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus seven tablet, which has received rave reviews,” said Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”
Google (NASDAQ:GOOG) has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 30.1%, with the biggest boost coming in the most recent quarter when revenue rose 35.3% from the year earlier quarter.
The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 60.7% and in the fourth quarter of the last fiscal year, the figure rose 6.3%.
Google (NASDAQ:GOOG) fell short of estimates last quarter after beating the mark the quarter before with net income of $8.75 versus a mean estimate of net income of $8.24 per share.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from $9.46 per share to $9.32. At $37.41 per share, the average estimate for the fiscal year has fallen from $37.67 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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