S&P 500 (NYSE:SPY) component Google, Inc. (NASDAQ:GOOG) will unveil its latest earnings on Thursday, July 14, 2011. Google Inc. provides search and advertising services and makes this information freely available to anyone with an Internet connection.
Google, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of $6.78 per share, a rise of 18.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $7.08. Between one and three months ago, the average estimate moved down and dropped from $6.82 during the last month. For the year, analysts are projecting net income of $29.50 per share, a rise of 12.1% from last year.
Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of $7.04 per share versus a mean estimate of net income of $7.14 per share. In fourth quarter of the last fiscal year, the company beat estimates by 65 cents.
Wall St. Revenue Expectations: On average, analysts predict $6.54 billion in revenue this quarter, a rise of 28.5% from the year ago quarter. Analysts are forecasting total revenue of $27.67 billion for the year, a rise of 25.8% from last year’s revenue of $22 billion.
Analyst Ratings: Analysts are bullish on this stock with 34 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 24.8%, with the biggest boost coming in the most recent quarter when revenue rose 26.6% from the year earlier quarter.
The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 8% in the first quarter from the year earlier, while the figure rose 28.8% in the fourth quarter of the last fiscal year, 32.2% in the third quarter of the last fiscal year and 23.9% in the second quarter of the last fiscal year.
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 Price Performance: During June 30, 2011 to July 13, 2011, the stock price has risen $31.88 (6%) from $506.38 on June 30, 2011 to $538.26 on July 13, 2011. The stock price saw one of its best stretches over the last year between November 30, 2010, and December 14, 2010, when shares rose for 11-straight days, rising 7.1% (+$39.20) over that span. It saw one of its worst periods between November 8, 2010, and November 17, 2010, when shares fell for eight-straight days, falling 6.9% (-$43.22) over that span. Shares are down $55.71 (-9.38%) year to date.
(Source: Xignite Financials)
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