Google (NASDAQ: GOOG) sold off slightly, just over 1%, into the close. Then, all hell broke out. Shares moved up 17% immediately after earnings hit.
Google reported revenues of $5.19 billion for the quarter ended March 31, 2008, an increase of 42% compared to the first quarter of 2007. In the first quarter of 2008, TAC totaled $1.49 billion, or 29% of advertising revenues.
GAAP operating income for the first quarter of 2008 was $1.55 billion, or 30% of revenues. This compares to GAAP operating income of $1.44 billion, or 30% of revenues, in the fourth quarter of 2007
GAAP EPS for the first quarter of 2008 was $4.12 on 317 million diluted shares outstanding, compared to $3.79 for the fourth quarter of 2007 on 318 million diluted shares outstanding.
The estimates for the search engine super-giant from First Call were $4.52 EPS on $3.61 billion in revenues. Next quarter estimates are $4.64 EPS on $3.8 billion in revenues. Estimates for fiscal Dec-2008 are $19.55 EPS on $15.91 billion in revenues.
Those estimates are just a memory now. Google murdered the market’s expectations.
Douglas A. McIntyre