Google net incomes soars to $1 billion

Posted on Friday, Apr 20 2007 @ 11:41 CEST by Thomas De Maesschalck
Google managed to beat analysts predictions with their first quarter financial results.

The search engine giant's quarterly net profit rose 69 percent, to a staggering $1 billion:
Net income rose to $1.0 billion, or $3.18 per diluted share, from the year-earlier quarter's $592 million, or $1.95 a share. Excluding stock-option expenses, profit was $3.68 per share versus $2.29 a year before.

Gross revenue rose 63 percent to $3.66 billion, including traffic acquisition costs of $1.13 billion paid out to affiliated Web sites that act as billboards for Google ads.

"Like last quarter, Google didn't crush the quarter but the Street is getting used to that. And the company is showing good gains versus Yahoo," Global Crown Capital analyst Martin Pyykkonen said.

Wall Street was looking for a net profit, on average, of $2.91 per share, according to Reuters Estimates. Excluding stock-option expenses and one-time items, analysts' consensus profit estimate was $3.31 per share.

Analysts had expected gross revenue, on average, of $3.57 billion, according to Reuters Estimates. Forecasts ranged from $3.43 billion to $3.70 billion.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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