“Mobile continues to bug Google,” Katie Lobosco reports for CNNMoney. “The company’s Motorola smartphone division continues to lose money, and a rise in mobile ads has squeezed the company’s profits.”
“The search giant reported that its second-quarter net income rose to $3.23 billion, or $9.56 cents per share,” Lobosco reports. “Though profit rose 15% from last year, Google’s results badly missed Wall Street analysts’ earnings expectations of $10.78 per share.”
“Google’s sales jumped to $14.1 billion, up 19% year-over-year,” Lobosco reports. “That also fell short of analysts’ estimates of $14.4 billion… Shares of Google [GOOG] feel 5% in after-hours trading. ”
Read more in the full article here.
“Operating margins dipped to a lower-than-expected 28 percent in the quarter from 33 percent a year earlier,” Alexei Oreskovic reports for Reuters. “Motorola, a money-losing handset manufacturer Google acquired in 2012, racked up a loss of $218 million before items, more than four times the $49 million it lost a year earlier.”
“‘It’s a little bit of a concern. Maybe they are not getting enough early traction with enhanced campaigns. The trajectory with CPCs [cost per click] should be getting a little better,’ said Kerry Rice, an analyst at Needham & Co.,” Oreskovic reports. “The operating margins miss, partly on Motorola’s swelling losses, were another cause for worry.”
Read more in the full article here.
MacDailyNews Take:
Google’s going to rue the day they got greedy by deciding to try to work against Apple instead of with them. – MacDailyNews Take, March 09, 2010
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dale S.” for the heads up.]
