S&P 500 (NYSE:SPY) component Google (NASDAQ:GOOG) will unveil its latest earnings on Thursday, July 19, 2012. Google provides search and advertising services and makes this information freely available to anyone with an Internet connection.
Google Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of $8.78 per share, a rise of 14.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $8.82. Between one and three months ago, the average estimate moved down. It also has dropped from $8.79 during the last month. For the year, analysts are projecting net income of $37.48 per share, a rise of 25.9% from last year.
Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of $8.75 per share against a mean estimate of net income of $8.24 per share. In the fourth quarter of the last fiscal year, it missed forecasts by 84 cents.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
A Look Back: In the first quarter, profit rose 60.7% to $2.89 billion ($8.75 a share) from $1.8 billion ($5.51 a share) the year earlier, exceeding analyst expectations. Revenue rose 24.1% to $10.64 billion from $8.57 billion.
Wall St. Revenue Expectations: Analysts predict a rise of 21.5% in revenue from the year-earlier quarter to $8.41 billion.
Stock Price Performance: Between May 16, 2012 and July 13, 2012, the stock price had fallen $52.41 (-8.3%), from $628.93 to $576.52. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 14, 2011, when shares rose for 10 straight days, increasing 19.4% (+$96.16) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 8.7% (-$53.56) over that span.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 28.8% over the last four quarters.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 25.9% in the third quarter of the last fiscal year and 6.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.84 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 5.92 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.3% to $9.74 billion while assets rose 7.8% to $56.86 billion.
Analyst Ratings: With 29 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: