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Google's Second Quarter Earnings Report
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GOOG
Google (Nasdaq:GOOG) announced its results for the most recent quarter on July 19, 2012. Google provides search and advertising services and makes this information freely available to anyone with an Internet connection.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Earnings: Quality Means Everything
The Numbers: Though Google's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported $8.42 per share versus the $8.76 per share estimate and revenues of $12.21 billion versus the $8.41 billion estimate. EPS rose 9.6% while revenue climbed 35.3% from the same period last year. Google has averaged revenue growth of 30.1% over the past five quarters. Google reported net income of $2.79 billion during the second quarter. This is 11.2% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "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."
A Look Back: Net income has increased 28.1% year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed 60.7% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for third quarter has fallen from $9.46 per share to $9.32. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $37.67 a share to $37.41 over the last 90 days.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Earnings: Quality Means Everything
The Numbers: Though Google's EPS fell short of estimates, the company's revenues managed to trump predictions. The company reported $8.42 per share versus the $8.76 per share estimate and revenues of $12.21 billion versus the $8.41 billion estimate. EPS rose 9.6% while revenue climbed 35.3% from the same period last year. Google has averaged revenue growth of 30.1% over the past five quarters. Google reported net income of $2.79 billion during the second quarter. This is 11.2% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "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."
A Look Back: Net income has increased 28.1% year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed 60.7% from the year-earlier quarter.
Looking Ahead: Expectations for the company's next-quarter results are lower than they have been. Over the past 60 days, the average estimate for third quarter has fallen from $9.46 per share to $9.32. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $37.67 a share to $37.41 over the last 90 days.
by
Investopedia Staff
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