Last night, Google announced the results of its last financial quarter which closed March 31. It reported total revenue of $1.42B USD, up from $1.31B USD from a year ago. These results would have been even higher had it not been for some special charges. Before these charges earnings per share were $5.16, healthily beating before-charges analyst estimates of $4.93 per share.
Google did miss the analyst forecast of $4.08B USD in sales, excluding its advertising partner commissions, turning in just $4.07B USD. Total sales came in at $5.51B USD, up 6 percent from a year ago. Jeff Rath, analyst at Canaccord Adams, cheers, "It's not an expensive stock, and stocks are rallying even on bad news. There's a building belief that the worst is behind us."
Google CEO Eric Schmidt states, "Despite the tough economic climate, we had a good quarter. But no company is recession-proof, and Google is definitely feeling the impact. The shift to online (advertising) gives us an advantage, so we're well-placed for the recovery when it occurs."
Cost cutting has been occurring at Google and was a major reason for its profits. The business cut its radio and newspaper advertising programs. It trimmed its employee stock option packages, exchanging them for lesser stock. It also cut 300 of its 20,000 jobs in one of its units, the first such cuts for the firm. It did hire some additional employees in other units, though.
The outlook for Google is generally sunny. It is preparing to roll out its display advertising service to compete with Yahoo's offerings. Meanwhile its search engine continues to dominate the market and its online applications platform continues to grow and see strong use.