Google misses profit forecast
Thursday, July 17, 2008
SAN FRANCISCO — — Google Inc. posted a 35 per cent rise in quarterly net profit, missing Wall Street's consensus forecast, showing the Internet leader may be suffering from a weakening global economy as rivals have.
Shares of Google fell to $477 (U.S.), a decline of more than 10 per cent, from a Nasdaq close of $533.44.
Net income for the second quarter rose to $1.25-billion, or $3.92 per diluted share, compared with the year-earlier quarter's $925-million, or $2.93 per diluted share, when an unexpected jump in expenses hit results.
Gross revenue rose 39 per cent to $5.37-billion.
Excluding stock-based compensation costs, the company reported a profit of $4.63 per share — below what Wall Street had forecast.
Analysts were expecting a net profit, on average, of $4 per share for the latest quarter, according to Reuters Estimates. Excluding stock option expenses, Wall Street was looking for an average second-quarter profit of $4.72 a share.
Revenue was expected to grow 39 per cent, on average, to $5.37-billion according to analysts tracked by Reuters Estimates. Forecasts ranged from $5.16-billion to $5.62-billion, representing growth of 33 per cent to 45 per cent.
© Copyright The Globe and Mail
|
