Google Hits Another Homer in Q3 - Analyst Blog
October 13 2011 - 12:49PM
Zacks
Even though analysts seemed a tad wary of
Google
Inc. (GOOG) 3rd quarter 2011 earnings numbers after the
closing bell today, the search engine king stepped up to the plate
and took one long. Revenues of $9.72 billion were up 33% year over
year and 8% sequentially. Diluted EPS (how Zacks reports Google's
earnings) reached $8.33, easily topping the $7.59 Zacks Consensus
Estimate.
The 10% positive earnings surprise bested the average positive
surprise over the last 4 quarters of 8.5%, and after-market traders
duly took notice. Up 1.91% in regular Thursday trading, GOOG shares
have shot up 5.2% in the after-market, which is tempered a bit from
the initial reaction to the earnings report.
For more on how Google tends to dominate the market post-earnings,
see my esteemed colleague Kevin Cook's piece published this past
Wednesday: "What's the Probability of a $60 Surge?"
Kicking off Google's press release this afternoon was a proud
notice that Google+, GOOG's new social network, has already
surpassed 40 million users. Much the way Google has the pluck to
have attempted to rival
Apple, Inc.'s (AAPL)
iPhone with its Android operating system for smartphones, so does
Google+ appear to be going after market share from
soon-to-go-public Facebook, Inc.
This all said, Google does have its work cut out for it. Aside from
buying
Motorola Mobility (MMI) for $12.5 billion
earlier in the 3rd quarter, Google has also increased its workforce
by 10% over the past three months. Add some anti-trust hearings
with the Federal Trade Commission and some concerns over Android
patent wars, and it may be understandable why 4 analysts have
actually downwardly revised estimates over the past month for Q4
and the full fiscal year.
Then again, with Google's growing reputation of continuing to beat
market expectations soundly (nearly always -- GOOG did post a 1.4%
miss in Q1 2011), we'll see if some of the 21 current earnings
estimates on the company are revised upward in the coming days.
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