Google Inc. Earnings Cheat Sheet: Increased Profit Helps Beat the Street

S&P 500 (NYSE:SPY) component Google Inc. (NASDAQ:GOOG) reported net income above Wall Street’s expectations for the third quarter. Google provides search and advertising services and makes this information freely available to anyone with an Internet connection.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Google Earnings Cheat Sheet for the Third Quarter

Results: Net income for Google Inc. rose to $2.73 billion ($8.33 per share) vs. $2.17 billion ($6.72 per share) in the same quarter a year earlier. This marks a rise of 25.9% from the year earlier quarter.

Revenue: Rose 33.4% to $9.72 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GOOG reported adjusted net income of $9.72 per share. By that measure, the company beat the mean estimate of $7.59 per share. It beat the average revenue estimate of $7.19 billion.

Quoting Management: “We had a great quarter,” said Larry Page, CEO of Google. “Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion. Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.3%, with the biggest boost coming in the most recent quarter when revenue rose 33.4% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.3 percentage point to 65.2% from the year earlier quarter. Over that span, margins have grown on average 1.4 percentage points per quarter on a year-over-year basis.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $7.66 versus a mean estimate of net income of $6.79 per share.

The company has now seen net income rise in two straight quarters. In the second quarter, net income rose 36.1% from the year earlier.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $8.82 per share from $8.53. The average estimate for the fiscal year is $30.83 per share, a rise from $29.50 ninety days ago.

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Yahoo! Inc. (NASDAQ:YHOO), Baidu.com, Inc. (NASDAQ:BIDU), Apple Inc. (NASDAQ:AAPL), AOL, Inc. (NYSE:AOL), Amazon.com, Inc. (NASDAQ:AMZN), Adobe Systems Incorporated (NASDAQ:ADBE), Demand Media Inc (NYSE:DMD), IAC/InterActiveCorp (NASDAQ:IACI), and Answers Corporation (NASDAQ:ANSW).

Stock Performance: Shares of GOOG were up 1.7% from the previous close.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)