Google earnings miss Street, shares drop 6%

“Google delivered quarterly earnings and revenue that fell short of analysts’ expectations on Wednesday, as ad pricing continued to weaken,” Karma Allen reports for CNBC. “Shares dropped sharply.”

“The company posted first-quarter earnings excluding items of $6.27 per share, up from $6 a share in the year-earlier period. Revenue increased by 19 percent to $15.42 billion from $12.95 billion a year ago,” Allen reports. “Analysts had expected the company to report earnings excluding items of $6.40 a share on $15.52 billion in revenue, according to a consensus estimate from Thomson Reuters.”

Allen reports, “After the earnings announcement, the company’s shares fell more than 6 percent in after-hours trading.”

Read more in the full article here.

“The number of ‘paid clicks’ by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts that had hoped for stronger volume growth,” Alexei Oreskovic reports for Reuters. “And the average ‘cost per click’ declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business.”

“Operating income slipped to 32 percent of revenue on an adjusted basis, from 34 percent in the year-ago period,” Oreskovic reports. “It posted $3.45 billion in net income, or $5.04 per share, in the three months ended March 31, compared to $3.35 billion, or $4.97 per share, in the year-ago period.”

“Google reported a $198 million net loss from ‘discontinued operations,’ which includes the Motorola smartphone business,” Oreskovic reports. “Google announced plans in January to sell the money-losing business to China’s Lenovo Group for $2.91 billion.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Scott M.” for the heads up.]

23 Comments

    1. I would advise everyone here to stop rating Zombie’s comments. He doesn’t deserve the recognition.

      He’s playing the role of hit whore and in his mind is winning every time you give him a single star.

    2. Not only are you a cancerous tumor on this earth, you are lower than the whale shit @ the bottom of the ocean and you need to be eradicated. Its zombies like you who make the planet an ugly place to roam.

  1. And if Apple had missed the Street’s predictions by 19% its stock would have dropped 50%.

    This is NOT speculation or whining. It is fact. Back in the day as Apple was starting to climb back out of the Dark Days one quarter (about 3/4 the way through the quarter) Apple issued a revised earnings projection. It downgraded its projections by about 10%. Apple predicted its revenues and earnings would still be positive (as opposed to a couple years earlier when Apple was losing money every quarter), just a bit less than it originally predicted. Apple’s stock took an almost 50% hit in one day.

    While I hate that this site focuses so much on Apple’s stock price and its legal battles, there are times when I can understand it. Apple is held to an unfair and different standard by the world (including Wall Street) than almost any other company.

    1. Apple is held to an unfair and different standard by the world (including Wall Street) than almost any other company.

      Winners ARE held to a higher standard. Even different standards, that have nothing to do with them, are used to uncover chinks in their armor.

      This is a universal theme.

      Apple could deflect much of it, if only they would design advertising campaign strategies to thwart their competitors, including Wall Street.

      As it is, competitors are taking cheap shots at Apple and Apple is dismissively quiet and that has to stop. Apple’s media campaigns lack contrast! Instead of making Apple consumers feel good about their purchases, it’s time Apple began showing us how miserable we’d be if we chose a competitors product. There is plenty of fodder out there decrying how bad the Android experience can be.

      As for Wall Street, Apple should shame them for their misses and their singular interest in making money off of Apple and its partners, and how they don’t really do anything but create the illusion of success or failure using voodoo doodoo.

      1. Did you even read my post? The specific example I gave was with regard to a period when virtually no one, other than the Apple faithful, thought Apple was a “winner”.

        Apple has almost always been held to a different, often higher, and often unfair standard. It does not matter whether Apple was in a leading position or not.

  2. Again they are stating non-GAAP numbers. GAAP, real profit that benefits stockholders is closer to $5.

    They value on non-GAAP as if that extra dollar benefits the stockholder. Actually it shows you how the top three are screwing the shareholders.

  3. Their revenue increased by 25%, profit by 5% but the operating income increased only 1-2%.
    The stock is now only 3.5% down so the impact is minimal. Given that it has risen 40% YTD you would expect some pull back.
    Google is still the darling of Wall St. The brokers will continue to recommend dumb schmucks to buy into the stock.

  4. Did we just see google bounce off their high water mark? With a PE of 29, they are precariously perched and have a good long way to fall from here if the jig is indeed up.

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