On Oct. 19, Google (NASDAQ:GOOG) released third-quarter earnings for the period ending Sept. 30.

  • Revenues exceeded analyst estimates by 48% while EPS missed analyst estimates by 2.4%.
  • Strong performance from Google-owned sites and partner sites led to a revenue increase of 70.4% to $2.6 billion.
  • EPS increased 79.4% to $2.36.
  • Increase in capital expenditures led to a 6.2% fall in free cash flow to $1.1 billion.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$1,815

$2,690

$1,578

70.4%

Net Profit

--

$733

$381

92.4%

EPS

$2.42

$2.36

$1.32

79.4%

Diluted Shares

--

311

290

7.2%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

61.01%

58.49%

2.52

Operating Margin

34.63%

33.52%

1.11

Net Margin

27.27%

24.15%

3.12

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$10,429

$7,630

36.7%

Accounts Rec.

$1,031

$542

90.3%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$207

$87

137.4%

Long-Term Debt

--

--

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$2,670

$1,801

48.2%

Capital Expenditures

$1,536

$592

159.3%

Free Cash Flow

$1,134

$1,209

(6.2%)



Find out why Fools always follow the money.

Related companies:

  • Yahoo! (NASDAQ:YHOO)
  • Baidu.com (NASDAQ:BIDU)
  • Netease.com (NASDAQ:NTES)
  • Expedia (NASDAQ:EXPE)

Related Foolishness:

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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 checkFool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.