Google Inc. Earnings Cheat Sheet: Strong Margins Continue as Net Income Rises

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

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Google Earnings Cheat Sheet for the Second Quarter

Results: Net income for Google Inc. rose to $2.5 billion ($7.68 per share) vs. $1.84 billion ($5.71 per share) in the same quarter a year earlier. This marks a rise of 36.1% from the year earlier quarter.

Revenue: Rose 32.3% to $9.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GOOG reported adjusted net income of $8.74 per share. By that measure, the company beat the mean estimate of $7.86 per share. Estimates ranged from $6.98 per share to $8.34 per share. It beat the average revenue estimate of $6.55 billion.

Quoting Management: “We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue,” said Larry Page, CEO of Google. “I’m super excited about the amazing response to Google+ which lets you share just like in real life.”

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 26.3%, with the biggest boost coming in the most recent quarter when revenue rose 32.3% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded one percentage points to 64.9% from the year earlier quarter. Over that span, margins have grown on average 1.7 percentage points per quarter on a year-over-year basis.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of $7.04 versus a mean estimate of net income of $7.14 per share.

The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 8% to $1.8 billion.

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

Stock Price Performance: Shares are up over 10% in after hours trading.

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(Source: Xignite Financials)