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Google just reported pretty damn healthy advertising sales and extreme profits for the first quarter. $369 million in profits on $1.256 billion in sales.
In other words, a 29% net margin compared to 22% for the monopolist Microsoft. This has got to be one of the highest net margins of any company in the US.
In other words, a 29% net margin compared to 22% for the monopolist Microsoft. This has got to be one of the highest net margins of any company in the US.
Google tops view, and stock soars
Shares rise to $215 in after-hours actions
By Bambi Francisco, MarketWatch
Last Update: 5:05 PM ET April 21, 2005
SAN FRANCISCO (MarketWatch) -- Google, the No. 1 search engine, said first-quarter profit shot up more than fivefold on revenue that doubled as more businesses placed ads on Google's site, and those of its distribution partners.
Late Thursday, Google (GOOG: news, chart, profile) said first-quarter earnings catapulted $369 million, or $1.29 per share, from $64 million, or 24 cents per share, in the year-ago period.
Excluding a stock-based compensation charge of $49 million and a tax benefit of $49 million, Google earned $1.29 per share.
Analysts surveyed by Thomson Financial had expected the company to make 92 cents a share on average.
Shares shot up 6% to $215.93 in after-hours action. The last time Google traded at these levels was after it reported fourth-quarter results in February. The intraday high at the time was $216.80.
Mountain View, Calif.-based Google said quarterly sales rose to $1.256 billion from $651.6 million a year earlier. Excluding the payments Google makes to other companies to acquire Internet traffic, the company generated sales of $794 million, more than the $731 million analysts had expected.
The unorthodox technology company founded by Stanford graduate students Sergey Brin and Larry Page impressed Wall Street in its third quarterly report after going public in August.
Google is benefiting as companies spend more of their advertising dollars online and as the prices paid for keyword-based search results rise.
No forecast, more shares
True to form, Google did not provide a financial forecast in its earnings release.
Analysts currently expect Google to earn 93 cents a share in the second quarter on sales of $768 million. For the full year, the search firm is expected to earn $3.94 a share on sales of $3.2 billion, up 67%. In 2006, analysts are forecasting that Google will earn $5.12 per share on sales of $4.4 billion.
Shares rise to $215 in after-hours actions
By Bambi Francisco, MarketWatch
Last Update: 5:05 PM ET April 21, 2005
SAN FRANCISCO (MarketWatch) -- Google, the No. 1 search engine, said first-quarter profit shot up more than fivefold on revenue that doubled as more businesses placed ads on Google's site, and those of its distribution partners.
Late Thursday, Google (GOOG: news, chart, profile) said first-quarter earnings catapulted $369 million, or $1.29 per share, from $64 million, or 24 cents per share, in the year-ago period.
Excluding a stock-based compensation charge of $49 million and a tax benefit of $49 million, Google earned $1.29 per share.
Analysts surveyed by Thomson Financial had expected the company to make 92 cents a share on average.
Shares shot up 6% to $215.93 in after-hours action. The last time Google traded at these levels was after it reported fourth-quarter results in February. The intraday high at the time was $216.80.
Mountain View, Calif.-based Google said quarterly sales rose to $1.256 billion from $651.6 million a year earlier. Excluding the payments Google makes to other companies to acquire Internet traffic, the company generated sales of $794 million, more than the $731 million analysts had expected.
The unorthodox technology company founded by Stanford graduate students Sergey Brin and Larry Page impressed Wall Street in its third quarterly report after going public in August.
Google is benefiting as companies spend more of their advertising dollars online and as the prices paid for keyword-based search results rise.
No forecast, more shares
True to form, Google did not provide a financial forecast in its earnings release.
Analysts currently expect Google to earn 93 cents a share in the second quarter on sales of $768 million. For the full year, the search firm is expected to earn $3.94 a share on sales of $3.2 billion, up 67%. In 2006, analysts are forecasting that Google will earn $5.12 per share on sales of $4.4 billion.
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