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.

Don’t Miss: Wall St. Cheat Sheet’s newest Feature Trades of the Month!

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), 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: Shares are up over 10% in after hours trading.

Don’t Miss Wall St. Cheat Sheet’s newest Feature Trades of the Month!

(Source: Xignite Financials)

More from The Cheat Sheet