Google (NASDAQ:GOOG) earnings are out, and traders are selling the news initially with shares down over 4% or $25.00 to under $525.00 in after-hours trading.
Its EPS came out as $3.56 on a non-GAAP basis and on an ex-TAC basis Google posted $2.72 Billion in revenues, and with the TAC its revenues were $3.87 Billion. This was a revenue increase of 58% compared to Q2 2006 and an increase of 6% compared to Q1 of 2007.
Google was expected to post $3.59 EPS on revenues of $2.68 Billion on an ex-TAC basis. Just for inference since the company does not issue guidance, the current expectation for Q3 is $3.76 EPS on $2.87 Billion revenues.
The bottom-line miss is due to greater operating expenses. It currently estimate stock-based compensation charges for grants to employees prior to July 1, 2007 to be approximately $770 million for 2007; and it sees dilution due to equity grants to employees at or below 2% for this year. It ended with some 13,786 employees on the payrolls and hired over 1,500 workers in the quarter.
Here was the full preview for Google today, comparing it to Microsoft. Google shares closed down 0.15% at $548.59 unofficially today, down only about $10.00 or less than 2% from its recent all-time highs.
Jon C. Ogg
July 19, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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