Google Inc. Earnings: Revenue Grows By Double-Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Google Inc. (NASDAQ:GOOG) reported higher profit for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for the internet information provider rose to $2.71 billion ($8.22 per share) vs. $2.54 billion ($7.81 per share) in the same quarter a year earlier. This marks a rise of 6.4% from the year earlier quarter.

Revenue: Rose 25.4% to $10.58 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GOOG reported adjusted net income of $9.50 per share. By that measure, the company beat the mean estimate of $9.06 per share. It beat the average revenue estimate of $8.4 billion.

Quoting Management: “Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the $10 billion mark for the first time,” said Larry Page, CEO of Google. “I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago. By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services. I’m very excited about what we can do in 2012 – there are tremendous opportunities to help users and grow our business.”

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 28.8%, with the biggest boost coming in the third quarter when revenue rose 33.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 25.9% and in the second quarter, the figure rose 36.1%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 74 cents in the third quarter and by 87 cents in the second quarter.

The company’s cost of sales rose 25.7% from a year earlier. Last quarter, cost of sales was 35% of revenue, similar to a year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from $8.73 a share to $8.77 over the last sixty days. For the fiscal year, the average estimate has moved down from $32.12 a share to $31.80 over the last ninety days.

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).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com