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Thursday, April 16, 2009

Google First-Quarter Earnings Impress

By Kathryn Glass

FOXBusiness

Search giant Google weighed in with impressive first-quarter earnings. The company reported adjusted earnings per share of $5.16 cents, solidly beating analyst estimates of $4.93 per share.

"It was a good quarter. Revenues were in line with the street consensus and EPS beat,” Jason Avilio, an analyst with Kaufman Bros., told Reuters. "Economically speaking, I think Q1 is the most challenging quarter, so the momentum should continue for the rest of the year."

Net income for the quarter came to $1.42 billion, or $4.49 per share, compared to net income of $1.31 billion during the first quarter of 2008.

Revenue for the quarter was $5.51 billion, a 6% increase from the same quarter last year, when the company reported revenue of $5.10 billion; however, revenue was down 6% from the previous quarter. Google CEO Eric Schmidt said the quarter was good for the company given the economic slowdown.

"While revenues were down quarter over quarter, they grew 6% year over year thanks to continued strong query growth. These results underline both the resilience of our business model and the ongoing potential of the web as users and advertisers shift online," said Schmidt, in a press release. "Going forward, our priority remains investing for the long term to drive future growth in our core and emerging businesses."

Shares of the company jumped 5% in after-hours, and was trading above $400 per share.

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