The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Google missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins contracted across the board.
Google reported revenue of $14.42 billion. The 20 analysts polled by S&P Capital IQ predicted sales of $15.38 billion on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $10.58 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $10.65. The 34 earnings estimates compiled by S&P Capital IQ predicted $10.56 per share. GAAP EPS of $8.62 for Q4 were 4.9% higher than the prior-year quarter's $8.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.9%, 810 basis points worse than the prior-year quarter. Operating margin was 23.5%, 960 basis points worse than the prior-year quarter. Net margin was 20.0%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $15.23 billion. On the bottom line, the average EPS estimate is $10.73.
Next year's average estimate for revenue is $64.62 billion. The average EPS estimate is $46.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 15,510 members out of 18,000 rating the stock outperform, and 2,490 members rating it underperform. Among 3,617 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,264 give Google a green thumbs-up, and 353 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Google is outperform, with an average price target of $800.97.
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