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Despite is long track record of beating its predicted averages, predictions continue to fall short of earnings

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.



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Only a matter of time now...
By quiksilvr on 4/17/2009 11:04:20 PM , Rating: 3
Before Google dominates the universe. They are already branching out to the solar system with Google Moon and Google Mars.




RE: Only a matter of time now...
By sinful on 4/17/2009 11:10:41 PM , Rating: 5
What you mean is it's just a matter of time before the Europeans sue them for being too successful and force them to include Yahoo search on their homepage.
LOL


RE: Only a matter of time now...
By niva on 4/18/2009 12:11:41 AM , Rating: 3
Bingo, that's one of the most appropriate comments I've seen on this website in a while!


RE: Only a matter of time now...
By Oregonian2 on 4/18/2009 4:29:12 PM , Rating: 3
Can this person be given a '6'?


RE: Only a matter of time now...
By oab on 4/18/2009 1:06:22 AM , Rating: 5
No, the moon base is called the "Google Copernicus Hosting Environment and Experiment in Search Engineering (G.C.H.E.E.S.E.)"

Positions are available here: http://www.google.com/jobs/lunar_job.html


RE: Only a matter of time now...
By jadeskye on 4/18/2009 1:53:10 AM , Rating: 2
i'm sure it's just a matter of time till Apple sues them for copying the iCheese marketing name.

Followed by the iToaster and the iMicrowave.


Kind of makes sense.
By Mitch101 on 4/18/2009 6:18:00 PM , Rating: 3
This kind of makes sense if people cant afford to go out they are probably surfing the web even more and a given percentage click on the ads so Its kind of no surprise they are making more money. Kudos to them. My only complaint is I have google ads on my site and the clicks have increased but the payouts have decreased I am even seeing 1 cent click throughs which I would rarely see but now see almost daily. Google's profits may well be that they are skimming more off the top which has lead me to try other ads. I dont make any real money off google ads but it does pay for my hosting fees and coffee expenses. Now I have to cut back on the coffee.




By DonkeyRhubarb on 4/20/2009 3:57:57 AM , Rating: 2
"Despite is long track record of beating its predicted averages, predictions continue to fall short of earnings"

Should it not be "earnings fall short of predictions"?

If not, the 'despite' at the beginning of the sentence mixes everything up!




Tax Big Search Now!
By borowki2 on 4/18/09, Rating: -1
RE: Tax Big Search Now!
By gmyx on 4/18/2009 8:03:32 AM , Rating: 3
Jealous?


RE: Tax Big Search Now!
By borowki2 on 4/18/09, Rating: -1
RE: Tax Big Search Now!
By weskurtz0081 on 4/18/2009 9:22:00 PM , Rating: 2
Are you serious? Really? You honestly think that companies shouldn't be allowed to make over a certain amount of money? Really?

Honestly, I am surprised you can even afford a computer.... or know how to use one for that matter.

Why don't you go educate yourself a little and see how that train of thought has worked in other countries.


RE: Tax Big Search Now!
By akosixiv on 4/18/2009 9:24:19 PM , Rating: 3
people rated you down for lack of common sense. Not racism.

They just deemed your post was not worthwhile to be read.


RE: Tax Big Search Now!
By weskurtz0081 on 4/18/2009 9:24:54 PM , Rating: 3
Also, for the racist comment. Do you even know what racist means? How can someone be racist if they don't know your race you clown? I don't see anywhere that you mentioned your race.

Maybe they voted you down because your an idiot? No.... no... can't be, that's not a race!


RE: Tax Big Search Now!
By shaw on 4/19/2009 12:04:31 AM , Rating: 5
Is a man not entitled to the sweat of his brow?

No, says the man in Washington. It belongs to the poor.

No, says the man in the Vatican. It belongs to God.

No, says borowki2. It belongs to everyone.


RE: Tax Big Search Now!
By msomeoneelsez on 4/19/2009 7:20:31 PM , Rating: 2
+1

One of the best references I have heard in a long time :D


RE: Tax Big Search Now!
By nafhan on 4/20/2009 9:54:07 AM , Rating: 2
Looking forward to Bioshock 2!


RE: Tax Big Search Now!
By PhoenixKnight on 4/20/2009 10:08:47 AM , Rating: 2
They're also making a Bioshock movie. The director of the Pirates of the Caribbean movies will direct it. *shudder*


RE: Tax Big Search Now!
By AlexWade on 4/19/2009 8:35:14 AM , Rating: 2
quote:
I just believe that if we spread Google's wealth around, it'd be good for everybody.

That is called communism. And it wouldn't be good for everyone.

quote:
P.S. To people who voted me down: y'all racist, just like Timothy McVeigh.

Okay, Jeanine Garofalo. It sounds like you are just trying to get sympathy by making a phantom connection when there is none. Just like Jeanine Garofalo did on MSNBC when talking about the April 15 tea party rallies. She called those people racists rednecks.


RE: Tax Big Search Now!
By samoya22 on 4/19/2009 5:56:22 PM , Rating: 2
...but it was a bunch of racist rednecks.


RE: Tax Big Search Now!
By msomeoneelsez on 4/19/2009 7:22:34 PM , Rating: 2
I am going to assume that was sarcasm.


RE: Tax Big Search Now!
By michael2k on 4/21/2009 1:21:08 PM , Rating: 2
Why? If you went to the wrong tea parties you did see redneck racists.

Which tea party did you go to?


RE: Tax Big Search Now!
By Lifted on 4/18/2009 8:33:50 AM , Rating: 2
You think Google doesn't pay tax?

What gave you that idea?


RE: Tax Big Search Now!
By ice456789 on 4/18/2009 11:16:41 AM , Rating: 2
If that was all sarcastic, then that post deserves a 6.

If you were serious, well, there's just no hope for you.


RE: Tax Big Search Now!
By suryad on 4/18/2009 11:15:52 AM , Rating: 2
That has to be one of the worst comments I have read on this site. Well not the worst but its up there and I have read quite a few of those!


RE: Tax Big Search Now!
By rippleyaliens on 4/18/2009 3:11:51 PM , Rating: 2
What has me tripping out is, that this company is profiting Billions of dollars.. NICE.... BUT even with turning a profit, they are still cutting corners, firing people, and turning into the very corporation that so called google owners, dispise...

GREED ...


RE: Tax Big Search Now!
By Zensen on 4/18/2009 4:27:51 PM , Rating: 2
because shareholders are more important, unfortunately...

The big (G)reed isn't something that pops up when you think of google but you do wonder when they are cutting corners and still making billions of dollars in profit.


RE: Tax Big Search Now!
By Oregonian2 on 4/18/2009 4:35:34 PM , Rating: 2
Ummm... they let go 300 marketing/sales folk out of a group of 20,000 employees because there was redundancy overlap in what people were doing and that redundancy was getting in the way of things getting done -- and that's being called "GREED"?

It's greedy when stupid redundant government-like structure is found and removed from a company's way of doing things?


RE: Tax Big Search Now!
By Nekrik on 4/18/2009 5:42:47 PM , Rating: 2
I don't understand the posts that accuse companies of greed. The job of these companies is to maximize return for the stakeholders, and their means of doing so includes making the right business decisions, even when it sucks and means some people will lose jobs. Are the comments coming from college kids who have some ideology that the World should be 'fair'? Microsoft, Apple, Google, Intel, etc... are not motivated by greed, they are motivated by the shareholders who will drop them if they are seen making decisions that do not maximize the return on their investment. I have to think that those who argue differently haven't had much time in the real world.


RE: Tax Big Search Now!
By Oregonian2 on 4/19/2009 3:02:20 AM , Rating: 2
Yes I agree with you even though I'm one of those at the receiving end of that axe (not from google, from another high-tech company).

:-(


RE: Tax Big Search Now!
By Clienthes on 4/19/2009 1:37:59 AM , Rating: 2
Google: "I'm sorry sir, but the position you hold in our organization is unnecessary. Your salary could be put to better use in other areas of the organization."

Employee: "So I'm fired?"

Google: "Certainly not! You see, a corporation should be kind of social welfare program. Once we hire you it would be evil to fire you, even if keeping you on means that we can't invest the money we would have paid you into hiring someone who could make a meaningful contribution. You get to keep your job, even though it hurts the company and all its other employees and stockholders."

Employee: "So why are we having this conversation?"

Google: "We were hoping we could guilt trip you into quiting. Did it work?"


RE: Tax Big Search Now!
By akosixiv on 4/20/2009 2:17:06 PM , Rating: 2
Its not Greed when you actually think about the future of the company, rather than just act when the sky is already falling down.

This kind of foresight is what some other companies needed before. Plus, laying off a few number just to protect the jobs of thousands more, is that really greed? A company has to turn in a profit for it to survive and grow and even produce other jobs.


RE: Tax Big Search Now!
By Reclaimer77 on 4/18/2009 7:51:53 PM , Rating: 2
quote:
It's obscene that Google is making all this profit while everyone is suffering during the economical downturn. The company must be made to bear its fair share of the burden of sustaining our community.


WOW, you are like the poster child of everything I fight against on Daily Tech.

Kind of ironic this is getting voted down when it seems like almost everyone on DT is a liberal or a closet socialist.


RE: Tax Big Search Now!
By MrBungle123 on 4/19/2009 5:11:20 AM , Rating: 2
quote:
it seems like almost everyone on DT is a liberal or a closet socialist.


are you calling me fat?


RE: Tax Big Search Now!
By msomeoneelsez on 4/20/2009 1:34:12 AM , Rating: 2
Actually, this is one of the more conservative sided sites I have seen, excluding the Drudge report of course :D


RE: Tax Big Search Now!
By Clienthes on 4/19/2009 1:22:50 AM , Rating: 1
Hilarious. Nice work.


RE: Tax Big Search Now!
By ninjaquick on 4/19/2009 3:04:38 AM , Rating: 1
Or we could take the stragglers out back and get rid of them, no use for the weak and sick, they take money away from everyone else with their special needs and health care. And get rid of the unemployed too, since they collect unemployment. And get rid of all the high school drug addict dropouts because they wasted hundreds of thousands of government money for no real apparent reason. And lets get rid of all that America and Capitalism stands for because apparently it doesn't and will never work in a country where people work hard to make as much money as they can to blow it all off on stuff at malls, because hoarding money and giving it to people who don't have the mental stability or GED to know how to use it right.

If you don't like Google then you can just go live in a cave. Personally i think there are 20k+ people who love Google and want the world for it.

I think that if you got a tax refund/return in the mail you have just as much right to complain about our current economic state as say, a monk from Nepal. I mean think about it, how much money does the government give back to the people. And they still complain about a company "cutting corners".

Socialist bastards. Go die in a fire, you are everything that is wrong with this country. I just hope the current administration doesn't fudge things up too much.


RE: Tax Big Search Now!
By msomeoneelsez on 4/19/2009 4:09:15 AM , Rating: 2
Ok, Im gonna bite... I will attempt to educate you on the economics of why your post is a) not based on any logic whatsoever, b) is just plain ignorant and selfish. It is essentially BSed.

But first, let me state my own personal beliefs. Google works hard, and produces (for the most part) phenomenal software, and is a leader in computer software innovation. This is the cause of their success... not unfair business practices, and not excessive layoffs (300 of 20,000 is only 1.5%). To me, this says that they have completely earned any and all profit that comes to them.

Now, for concrete economic facts. When a business makes this much profit in a fair manner, they do something called "investing." That means that they use what they have, to buy things, to make more. Investment is what drives an expansion of GDP... that is a very good thing, so long as it is kept in check.

So, profit => investment => increase in GDP.

Lets talk about taxes for a minute here. When a tax is placed, it places a burden on both the consumer and supplier, in this case the consumer is the company placing an ad, supplier is google. This means that there is lower profit, but higher payment by the consumer, which DOES mean a lower number of ads that are placed on Google's service... but it also means that Google has to compensate for its loss in revenue by placing more ads. NOT good by what you are wanting in the ways of "visual pollutants."

So, higher taxes => lower profit, higher cost to consumer => more ads placed, less ads bought by companies through google.

As for what taxes Google is already paying on them... Think "federal income tax for corporations." Yes, they are already taxed.

Now, lets cut to the BS parts of your post.
quote:
It's a matter of fairness

No, it's a matter of your desire to work less, while being supported by those who work harder. Socialism is what you are talking about, and that has shown time after time to be unsuccessful. There are successes, few and far between... and they are VERY lucky.

quote:
We need to put an end to this corporate freeloading

They aren't freeloading, they are providing services that people are buying. That is why they are called a "business." That is how they turn a profit. Freeloading is where a company (or in your desired case, individual, "society", etc.) gets money (i.e. bailout money, medical insurance, welfare) from the government, which is taken from those who pay taxes. Generally, those who pay taxes work harder than those who don't.

Some facts about the US income tax system.
quote:
Update: The chart above is from the Joint Economic Committe (based on 2006 IRS data), showing the percentages of federal personal income tax paid by different groups of taxpayers: The top 1% of taxpayers pay about 40% of all income taxes, the top 10% pay 71%, and the top 50% pay 97% of all taxes. The bottom 50% pays less than 3% of all income taxes paid.

http://mjperry.blogspot.com/2008/08/tax-facts-of-d...

The chart in reference is on the linked page.

Not only is this fair, it is MORE than fair. I would assume that the load out for businesses and corporations are similar.

We (the United States) are having more and more of a "representation without taxation" style of government, which means that more and more people have less and less of a stake in the economic well-being of the country.

Now... PLEASE respond to this borowki2, I REALLY want to know if you may have learned something. If not, then you are truly ignorant, and racism is the least of your problems, or Obama's problems for that matter, because it is people like you who support him.


RE: Tax Big Search Now!
By samoya22 on 4/19/2009 6:01:20 PM , Rating: 2
aw, snap!


RE: Tax Big Search Now!
By INeedCache on 4/20/2009 5:28:00 AM , Rating: 2
quote:
It's a matter of fairness

...Socialism is what you are talking about, and that has shown time after time to be unsuccessful...

Isn't that exactly where this country is going by the government bailing out selective private industries?


RE: Tax Big Search Now!
By msomeoneelsez on 4/20/2009 6:50:42 PM , Rating: 2
Yes and no.

The country is definitely moving towards socialism, and has been since FDR and the New Deal, but governments bailing out selective private industries... that is a little bit sketchier on where it is leading us.

It all depends on the manner by which the companies are being bailed out by. In the current case, many businesses are having to comply to regulations, which in itself is not socialistic, but when said regulations become invasive on private decisions for how to run business, and who runs it (think GM) before, during, or after the period when government gives away tax payer's money.

America needs to correct its economic and political systems, and a few ways of doing that would be:
a) Bring back the Gold Standard.
- It gave a physical halt to inflation... it makes it literally impossible to have the uncontrollable inflation that destroys economies.
b) Reduce, but do not eliminate, welfare.
- The current welfare system is promoting the acts of laziness that are stereotyped to the impoverished. Why is it stereotyped? Because for a large portion of those on welfare, there is either no will to work, or an abuse of the welfare system's money. That is a fact.
c) Completely reform the tax code.
- I don't think I need to explain why 13,458 pages of tax laws are a bad idea...
- When reforming the tax code, install a FLAT tax. That's right, not a progressive tax. As I stated in my previous post, representation without taxation is a TERRIBLE idea. Then again, the public belief that the rich don't pay enough taxes is TERRIBLE as well.

Remember, that is only a few of many ways to improve the United States.

Anyways, I answered your question and then some, so I am going to stop now haha.


RE: Tax Big Search Now!
By msomeoneelsez on 4/20/2009 6:54:09 PM , Rating: 2
edit:

The tax code is actually 16,845 pages long.

The previous number stated of 13,458 pages was only the part written by the IRS. Congress wrote 3,387 pages as well.

And this was all information that is readily available, although hard to add up (thus my edit :D) from the US government printing office. Yes, you can buy a copy of the entire US tax code, for over $1000 USD.


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