Dazzle them, Master, with a word
Such as the universe has never heard;
Whisper it till the earth's foundations quake,
And fiery worlds awake
And shake
Their burning pinions, and ring out the cry
That shrilly echoes
Where between whirling planets flows
The ardent stream of palpitating light.
-- C.M. Verschoyle, "The Deliverer"
On April 19, Internet search and advertising champion Google
- Revenues minus traffic acquisition costs came in at $2.5 billion, just as expected. The continued strength of Google's earnings growth keeps baffling investors and analysts alike.
- Even after winning a bidding war with Microsoft
(NASDAQ:MSFT) to acquire the other online advertising powerhouse, DoubleClick, for $3.1 billion, there will be plenty of debt-free cash left in the company's Mountain View coffers. More than $8.8 billion, in fact. - International revenues are growing faster than the domestic take, rising to 47% of sales, compared to 42% last year. Clearly, Google doesn't intend to let the likes of Baidu
(NASDAQ:BIDU) , Yahoo!(NASDAQ:YHOO) , and Rediff(NASDAQ:REDF) have all of the overseas fun to themselves.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$3,664 |
$2,254 |
62.6% |
Net Profit |
$1,002 |
$592 |
69.2% |
EPS |
$3.18 |
$1.95 |
63.1% |
Diluted Shares |
314.9 |
304.1 |
3.5% |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
59.9% |
59.9% |
0.0 |
Operating Margin |
33.3% |
33% |
0.4 |
Net Margin |
27.4% |
26.3% |
1.1 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$11,936 |
$8,429 |
41.6% |
Accounts Rec. |
$1,477 |
$844 |
74.9% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$182 |
$146 |
24.6% |
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$1,220 |
$825 |
47.9% |
Capital Expenditures |
$597 |
$345 |
73% |
Free Cash Flow |
$623 |
$480 |
29.8% |
$610 |
$363 |
68.3% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Google Stands Tall
- Before the Call: Gauging Google
- 7 Surprising 1-Star Stocks
- You're Missing Out on China
- Foolish Fundamentals: Valuation
Yahoo! is a Motley Fool Stock Advisor recommendation, Microsoft is an Inside Value selection, and Baidu is a Rule Breakers pick. Find out more about the joys of international web properties with a free 30-day trial pass to any of our market-beating newsletter services.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. He's slightly disappointed that the new share count wasn't approximately 3.14159265 hectomillion -- it was so darn close. Fool rules are here.