Today Google announced its latest set of financial results. Not too shabby, either. Google's also splitting its stock by way of introducing a new class of shares. It sounds all complicated and stuff, but it’s really no big deal. I’ll do my best to explain it in plain English for everyone.
First let’s look at Google’s results:
Google generated $10.65 billion in revenue for the first three months of 2012. That’s a mighty healthy 24 percent growth from the year-ago period. Operating income was up 32 percent. Earnings per share (EPS) was $10.08, compared to $8.08 last year. In case you see headlines highlighting different earnings per share, keep in mind Wall Street usually cares about the “non GAAP” earnings, which is what we're talking about here.
The financials tell us that Google is growing at a good clip, and earnings are keeping pace with revenue growth. All of that is good news. Considering how dominant Google is in search and content advertising, it’s not like we were expecting profit margins to shrink.
The stock market likes the numbers so far. The $10.08 in EPS compares to Wall Street expectations of $9.64. Google stock was trading up about 3 percent in after-hours trading.