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Google Earnings More Than Good Enough

Google Inc. (NASDAQ: GOOG) is out with its Q3-2010 earnings report.  The king of Internet search reported that earnings were $6.72 EPS but adjusted the figure was $7.64.  It also posted $5.5 billion in revenues.  Thomson Reuters has estimates of…

By Jon C. Ogg
Published October 14, 2010, 4:16pm ET · 2 min read

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Google Inc. (NASDAQ: GOOG) is out with its Q3-2010 earnings report.  The king of Internet search reported that earnings were $6.72 EPS but adjusted the figure was $7.64.  It also posted $5.5 billion in revenues.  Thomson Reuters has estimates of $6.67 EPS and $5.25 billion in revenues.  Google does not give guidance but for reference its next quarter estimates are $7.48 EPS and $5.77 billion in revenues.  The headline revenue before deducting traffic acquisition costs was $7.29 billion.

The big figure is that Google’s cash and equivalents grew sharply again.  That new balance is $33.4 billion.

The headcount grew again to 23,331 at 9/30 from 21,805 last quarter.

Google Sites revenues were $4.83 billion, or 67% of all revenues, and up 22% from a year ago.

Google Network revenues from partner sites were $2.20 billion, or 30% of total revenues, up 22% from a year ago.

International revenues were 52% of revenues again, same as before.

Paid clicks rose approximately 16% over the third quarter of 2009 and increased approximately 4% sequentially.

Cost-per-click rose 3% from a year ago and rose 2% sequentially.

Traffic Acquisition Costs shared with partners rose to $1.81 billion in the third quarter of 2010 versus $1.56 billion a year ago. TAC as a percentage of advertising revenues was 26% versus 27%  a year ago.

Google shares closed at $543.20 and shares are trading up about 7% over $580.00 in the after-hours session. We have so far seen more than 1 million shares cross hands after the close and we’ll be paying close attention to the morning trade.

JON C. OGG

Contact [email protected] for any questions or corrections.

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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