Google (GOOG) just reported a solid quarter after the close of trading today. There was a bit of drama as CNBC at first reported revenue after TAC as $3.07 billion – well below analyst estimates for $4.06 billion. The stock got torched in after hours trading until CNBC corrected the number to $4.07 billion a few minutes later.
The numbers came in pretty much in line with analyst estimates: $4.07 bil in revenues after TAC compared to estimates for $4.06 bil; EPS of $5.36 a share compared to estimates for $5.09. Revenues after TAC were up 4.5% year over year and net income was up 16%.
Revenue growth is slowing at Google as it matures and the economy slows but they are not by any means falling off a cliff. They seem to be doing a good job of managing costs these days as well which is resulting in solid bottom line growth.
The stock represents decent value at maybe 16 times forward earnings once you back out their huge cash hoard.
This report was mostly in line with expectations and so I wouldn’t expect a big move in Google shares or the overall market in response to this report tomorrow morning. Technically, Google is at pretty strong resistance on the upside.