The search engine king missed Wall Street estimates for earnings per share (EPS) by $0.15, with adjusted EPS coming in at $6.08 per share for a 27% gain compared to the same quarter a year ago.
But it beat revenue estimates, coming in at $15.96 billion (Wall Street had it at $12.32 billion), good for a 21.7% gain compared to Q2 2013.
One surprise: Google announced its chief business officer will leave his position.
“Nikesh Arora, our chief business officer, will be leaving Google after almost ten years at the company to join one of our partners, SoftBank, as Vice Chairman of SoftBank Corp. and CEO of SoftBank Internet and Media. Omid Kordestani, who was our business founder and led our sales teams for many years, will be stepping in to lead our business organization for now.”
The company appeared happy with today’s revenue beat and outlook.
“Google had a great quarter with revenue up 22% year on year, at $16.0 billion,” Chief Financial Officer Patrick Pichette said in a press release. “We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term.”
Google Class A stock (GOOGL) shot up 2.3% in after-hours trading following the results.
Earlier this year, GOOG stock (which split in April) dropped when the company racked up expenses related to its Jan. 14 purchase of Nest Labs. The $3.2 billion purchase bought Google the leader in the “smart home” revolution, known for developing Internet-connected, or “smart,” thermostats and smoke and carbon dioxide detectors.
Despite the dip, Google stock has rallied nearly 9% since May.
Today, our expert watched four key components in Google’s earnings. Here’s what they are – and what he thinks is in store for Google stock in coming months…
Today’s Four Big Numbers and Where Google Stock Is Going
Money Morning Chief Investment Strategist Keith Fitz-Gerald keyed in on four big numbers: ad pricing, revenue, earnings, and profit margins.