Google Beats Wall Street Expectations with Q3 Earnings
Written by Pablo Palatnik on October 17, 2008
Today, at about 4:30pm, Google announced its Q3 earnings for 2008 and they are more than positive. With the economy being the way it is and advertisers tightening their budgets to control their ad spend, Google still came out on top.
“…net income for the period ended in September rose to $1.35 billion, or $4.24 a share, from $1.25 billion, or $3.92 a share, in the same period a year earlier. Net revenue rose to $4.04 billion.
Excluding special items, Google said earnings for the quarter were $4.92 a share. Analysts on average had estimated Google would post earnings excluding special items of $4.74 a share, on net revenue of $4.04 billion, according to FactSet Research,” reports MarketWatch.
As many know, Googles growth has been attributed to their crazy ways of spending, “Google cut expenses in a number of areas in the quarter, including research and development and sales and marketing. The company added roughly 500 new employees, a relatively small number compared to other recent periods. “We have continued to hire,” said Google Chief Financial Officer Patrick Pichette, “We’re just doing it responsibly.”
All companies across the board are cutting cost due to the economy and that includes advertisers who do use Google. As this is the final quater of the year, the holiday times, when advertisers RAMP UP their ad spend, these holidays don’t seem they will be the best of previous years as consumer spending is way down bringing that to e-commerce as well. As it should be the strongest quater of the year for Google, it may not be so, but thats yet to see.
The Yahoo-Google deal is still being looked at by the federal government which has yet to take a position on this as a company such as SearchIgnite says this deal could drive keyword prices up on Yahoo by 22%! Today, Balmer, CEO of Microsoft, brought up the possibility of going after Yahoo AGAIN, which drove the stock of the company up…again…that seems like a long shot with so many failed attempts.
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