The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Google missed on revenue and missed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share improved.
Margins dropped across the board.
Google booked revenue of $10.6 billion. The 25 analysts polled by S&P Capital IQ looked for a top line of $10.9 billion. Sales were 25% higher than the prior-year quarter's $8.4 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $9.50. The 33 earnings estimates compiled by S&P Capital IQ predicted $10.48 per share on the same basis. GAAP EPS of $8.22 for Q4 were 5.3% higher than the prior-year quarter's $7.81 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 65.0%, 10 basis points worse than the prior-year quarter. Operating margin was 33.1%, 220 basis points worse than the prior-year quarter. Net margin was 25.6%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.7 billion. On the bottom line, the average EPS estimate is $10.11.
Next year's average estimate for revenue is $46.0 billion. The average EPS estimate is $43.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 14,847 members out of 17,316 rating the stock outperform, and 2,471 members rating it underperform. Among 3,563 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 3,215 give Google a green thumbs-up, and 348 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 $731.19.
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