FOX Translator
No data currently available.
No data currently available.
Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.
Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.
Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?
You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.
If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.
Home / Markets / Industries / Technology
Thursday, July 17, 2008
Google's Stock Dives on 2Q Miss
FOXBusiness
Google posted second-quarter earnings that missed Wall Street’s expectations -- further evidence that the search engine’s earnings growth continues to decelerate.
The tech giant earned $1.25 billion, or $3.92 per share, on $5.37 billion in revenue. A year ago, Google (GOOG) earned $925.1 million, or $2.93 per share.
On an adjusted-basis, Google earned $4.63 per share, compared to average estimates from Thomson Reuters for $4.74. The company's revenue matched average estimates.
Google said its second-quarter paid-clicks were up 19%.
Shares of Google were down more than 10% just minutes after the results were announced.
"Strong international growth as well as sustained traffic increases on Google's web properties propelled us to another strong quarter, despite a more challenging economic environment," CEO Eric Schmidt said in a press release.
The second quarter marked the first full quarter since Google took ownership of DoubleClick, the $3.2 billion Internet advertising company it acquired in March.
Google’s stock is down almost 25% year-to-date, but did rally by 20% during the second quarter.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
