- Google CEO: New operating system changes the game
- Guatemalan court rules in favor of tweet author
- Sprint Nextel signs networking deal with Ericsson
- How exactly does Twitter plan on making money?
- Germany calls for ban of neo-Nazi sites abroad
- Top media execs wonder how Twitter will make money
- Universal teams with TuneCore to discover talent
- EMC wins bid contest in $2.1B deal for Data Domain
|
CNBC'S MOST SHARED
- Investing in Tech Now
- What You'll See On My NASCAR Documentary Tonight
- Warren Buffett Tells CNBC Consumer Sales Remain "Very, Very Soft"
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- Software Giants Rush to Cash In on Carbon Counting
- Apartment Vacancy Rate Hits 22-Year High
- Preparing for Retirement
- Microsoft Plays a Game of Bing Pong
- Trade Deficit Lowest in 10 Years; Import Prices Jump
- Obama: Full Economic Recovery 'A Ways Off'
- Cisco Cutting up to 2,000 Jobs, Analyst Says
- Geithner To Call for Policing of Derivatives
- AIG Prepares to Pay More Bonuses to Executives
- UBS Can't Comply with US Request: Internal Memo
- Treasury Sold Warrants Below Market Value: Panel
- Chevron Warns Earnings Hit by Weak Refining Margins
- Christmas in July: Consumers to Out-Scrooge Scrooge
![]() |
Click here for more earnings info |
Google's quarterly net income fell short of Wall Street expectations Thursday, suggesting it may be suffering from a weakening U.S. economy like its rivals, and its shares fell about 10 percent.
Net income for the second quarter rose 35 percent to $1.25 billion, or $3.92 per diluted share, from the year-earlier quarter's $925 million, or $2.93 per diluted share, when an unexpected jump in expenses hit results.
Excluding stock-based compensation costs, the company reported a profit of $4.63 per share—below the $4.72 average of Wall Street analyst forecasts.
Gross revenue rose 39 percent to $5.37 billion, matching the average forecast, according to analysts tracked by Reuters Estimates. Forecasts had ranged from $5.16 billion to $5.62 billion, representing growth of 33 percent to 45 percent.
Google shares [GOOG
Loading...
()
] fell about 10 percent after finishing regular Thursday trading hours 0.40 percent lower at $533.44. Google's stock price rose 20 percent during the most recent quarter, but is down for the year so far.
Despite the company's long-standing refusal to provide forecasts on its financial results, investors have come to count on Google to deliver positive revenue and earnings surprises over and above consensus expectations each quarter.
Since its initial public offering in August 2004, Google has regularly reported revenue surprises about 2 percentage points above the average analyst expectation, according to Reuters Estimates data.
Such outperformance powered the stock to lofty levels. But even merely meeting expectations is deemed by investors as a failing grade, leading to stock sell-offs.
For the quarter, Google's own sites accounted for 66 percent of revenue, similar to that of the March quarter and up slightly from 64 percent in the June quarter a year ago. Ads on Google partner sites produced 31 percent of revenue.
International revenue rose to 52 percent of revenue from 51 percent in the first quarter and 48 percent in the second quarter of last year.









