Google Earnings: Here’s Why Investors are Excited

Google Inc. (NASDAQ:GOOG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.89%.

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Google Inc. Earnings Cheat Sheet

Results: Net income increased 6.88% to $2.89 billion ($10.65 per diluted share) in the quarter versus a net gain of $2.7 billion in the year-earlier quarter.

Revenue: Rose 36.26% to $14.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Google Inc. reported adjusted net income of $10.65 per share. By that measure, the company beat the mean analyst estimate of $10.52. It beat the average revenue estimate of $12.36 billion.

Quoting Management: “We ended 2012 with a strong quarter,” said Larry Page, CEO of Google. “Revenues were up 36% year-on-year, and 8% quarter-on-quarter. And we hit $50 billion in revenues for the first time last year – not a bad achievement in just a decade and a half. In today’s multi-screen world we face tremendous opportunities as a technology company focused on user benefit. It’s an incredibly exciting time to be at Google.”

Key Stats:

Revenue increased 2.26% from $14.1 billion in the previous quarter. Net income increased 32.81% from $2.18 billion in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $10.68 to a profit $10.61. For the current year, the average estimate has moved down from a profit of $40.03 to a profit of $39.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)