17:09 GOOG Google earnings color -Update-
Reuters is telling us that EPS, excluding stock based compensation charges and non-recurring items, and taxed at co's expected tax rate of 30%, came in at $1.81, $0.04 above their consensus of $1.77.
31-Jan-06 17:50 ET In Play Google conference call notes (GOOG) 432.66 : GOOG on call clarifies $1.54 non-GAAP eps vs. $1.51 in Q3 2005, citing a tax rate that was "well above expectations", due to mix of U.S. and overseas earnings. (more int'l revs were taxed at a higher domestic tax rate). Co says it must "true up" the tax provision for the rest of the year; expects 30% effective tax rate for '06. GOOG says it''s "very pleased" w/ its results. Co contributed $95 mln in Q4 to Google foundation; co says it will not make donations in the forseeable future, but will invest in poverty, environmental causes; about $175 mln in spending planned over the next 3 yrs. GOOG says pipeline is strong, co points to contracts that are for multi-yr terms. Co notes that aggregate growth of partner network is growing slower than Google.com; co says that's been a trend for some time, it can't project how much that will be an issue going fwd. Analysts ask about increase in sales and marketing line: Co points to "exceptional" opportunities in int'l markets, co needs to spend to "harvest" its opportunities. GOOG notes TimeWarner AOL deal, being a 5-yr extension, says more collaboration between the cos coming. GOOG says it's doing more to cater to Fortune 500 customers, cites great success signing up resellers. Google wraps it up, says "Google Cube" opportunity is not that interesting; GOOG focused on strengthening partnerships, rather than making PC companies its competitors. Stock trading at $374.68 after hrs |
