Google’s (GOOG) Earnings, Revenue Up Sharply, Fall Short of Estimates

Posted by on Jul 19, 2010 | No comment

By Michael Bogan

Google Inc. (Nasdaq: GOOG) posted sharply higher second-quarter revenue and profits after the closing bell on Thursday, but fell short of Wall Street’s estimate.

Google reported higher employee costs as the company strives to maintain its lead in online search and enters new revenue opportunities. Google generates most of its revenue from advertising search results. But the company is now expanding into Web display advertising, mobile ads, and operating systems for computers and handheld devices.

Google reported approximately 1,200 additions to its payroll during the second quarter, ending June with more than 21,800 full-time workers. The company said it will continue to add employees in coming quarters.

“Google is escalating its investments as it transitions from being a ‘one-trick pony’ to generating material revenues from non-search segments,” Jefferies & Co. analyst Youssef Squali wrote in note to clients.

Second-quarter results include earnings of $1.84 billion, or $5.71 per share, on revenue of $6.82 billion, compared with last year’s second quarter profit of $1.48 billion, or $4.66 per share, on $5.52 billion in revenue.

Excluding special items of employee stock compensation, Google reported a $6.45 per share profit. Analysts polled by Thomson Reuters anticipated a $6.52 per share profit.

The mean analyst estimate for the stock is $629, reported Barron’s. On Friday, shares of Google closed at $459.61.

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About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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