Google Inc (NASDAQ:GOOG) Still A Buy After Stock Split And Quarterly Earnings Report


Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – The newly minted Google twins Google Inc (NASDAQ:GOOG) and Google Inc (NASDAQ:GOOGL) aced their first post-stock split quarterly earnings report with stellar revenues and profit. It keeps the company solidly in the “Buy” rating zone despite missing analyst estimates, which could possibly be attributed to the unpredictability of how Wall Street would react to the recent stock split. Not to mention the whole Motorola Solutions Inc (NYSE:MSI) debacle and the sale of Motorola Mobility to Lenovo Group Limited (ADR) (OTCMKTS:LNVGY).

The Google First Quarter Earnings Report

Google Inc. reported $15.42 billion in consolidated revenues for the first quarter of 2014, a 19% increase as compared to the first quarter in 2013. GAAP operating income was pegged at $4.12 billion, which works out to 27% of revenues.

That may sound fabulous, but note that in the first quarter of 2013, Google reported GAAP operating income that was 29% of revenues.

Non-GAAP operating income for the first quarter this year was $4.95 billion or 32% of revenues, as compared to $4.40 billion (34% of revenues) for the same quarter last year.

GAAP EPS was $5.04 on 685 million diluted shares outstanding, as compared to $4.97 in the first quarter of 2013 on 673 million diluted shares outstanding. Non-GAAP EPS for the quarter was $6.27, compared to $6.00 for the same quarter last year.

Other highlights from the earnings report include $8.76 billion in international revenues from outside the U.S., which works out to 57% of the total revenue for the quarter. Another important disclosure was that the number of aggregate paid clicks dropped by 1% over the last quarter of 2013.

Larry Page Statement

Larry Page, CEO of Google, said that, “We completed another great quarter. Google’s revenue was $15.4 billion, up 19% year on year. We got lots of product improvements done, especially on mobile. I’m also excited with progress on our emerging businesses.”