Google Inc. (NASDAQ: GOOG): Q2 Earnings Preview 2011

Google Inc. (NASDAQ: GOOG), owner of the world's most-popular online search engine, is scheduled to release second quarter earnings after the closing bell on Thursday, July 14, 2011. Analysts, on average, expect the company to report earnings of $7.87 per share on revenue of $6.54 billion. In the year-ago quarter, the company reported earnings of $6.54 per share on revenue of $5.09 billion.

Google Inc., a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers. The company's innovations in web search and advertising have made its web site a top internet property and its brand one of the most recognized in the world.

In the preceding first quarter, the Mountain View, California-based company's net income was $2.30 billion or $7.04 per share, compared to $1.96 billion or $6.06 per share in the fourth quarter last year. On an adjusted basis, the company earned $8.08 a share in the second quarter. Revenue rose 27% to $8.58 billion from $6.78 billion. Analysts, on average, expected the company to report earnings of $8.13 per share on revenue of $6.44 billion.

Google is the undisputed market leader when it comes to web search. According to market research firm ComScore, Google held its place as the number one US search provider with a 65.5 per cent market share in May.This represented a five per cent monthly increase for Google

Google is also pursuing an aggressive strategy in rapidly growing mobile market. According to ComScore, out of 234 million U.S. mobile subscribers, 76.8 million owned smartphones during the three months ending in May 2011. Gartner says that the global mobile-ad market will grow from $3.3 billion in 2011 to $20.6 billion in 2015. Google aims to grab the lion's share of that revenue. In mobile space, Google is taking on Apple Inc.'s (NASDAQ: AAPL) iPhone with its Android operating system. Google has made its Android operating system software available on a variety of different mobile devices. The company has seen its Android platform appear on more than 300 devices, with 400,000 Android gadgets launching every day.ComScore 's mobile subscriber market share report for the three month average period ending May indicates that Google's open source operating system, Android continues to increase its popularity in the United States. The report revealed that Google Android grew 15 percentage points since February, strengthening its number 1 position with 38.0 percent market share. In the same three-month period, Apple's (NASDAQ: AAPL) U.S. market share increased from 25.2% share to 26.6% share, a 5% hike. According to Gartner, Android will run on 49.2 percent of smartphones sold next year. 

Google has been leveraging its Android operating system to make major gains in the smartphone industry. With its forthcoming Google Wallet payment service, an Android smartphone will become a credit card.

Google has also long sought to develop a social service that can counter the popularity of Facebook. The company recently unveiled a new service designed to compete with Facebook Inc. and others in online social-networking. Google+ utilizes contacts developed by users of other Google services, and enables users to place them in distinct categories. Other aspects of the service include video chat, photo albums and group text messaging. 

Looking ahead, Google's growth is expected to rev up exponentially, thanks to the perfect proliferation of mobile, social and local applications on handheld devices consumers carry with them wherever they go.

The company's stock currently trades at a forward P/E (fye Dec 31, 2012) of 13.77 and PEG Ratio (5 yr expected) of 0.88. In terms of stock performance, Google shares have lost nearly 10 percent since of the beginning of the year.

Full Disclosure: None.

Google Inc. (NASDAQ: GOOG): Q1 Earnings Preview 2011

Google Inc. (NASDAQ: GOOG), owner of the world's most-popular online search engine, is scheduled to release first quarter earnings after the closing bell on Thursday, April 14, 2011. Analysts, on average, expect the company to report earnings of $8.13 per share on revenue of $6.44 billion. In the year-ago quarter, the company reported earnings of $6.76 per share on revenue of $5.06 billion.

Google Inc., a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers. The company's innovations in web search and advertising have made its web site a top internet property and its brand one of the most recognized in the world.

In the preceding fourth quarter, the Mountain View, California-based company's net income was $2.54 billion or $7.81 per share, compared to $1.97 billion or $6.13 per share in the fourth quarter last year. On an adjusted basis, the company earned $8.75 a share in the second quarter. Revenue increased to $8.44 billion fom $6.67 billion in the previous year quarter. Analysts, on average, expected the company to report earnings of $8.06 per share on revenue of $6.04 billion. 

Google is the undisputed market leader when it comes to web search. Google leads the search market with a share of around 68% while competitors Yahoo (NASDAQ: YHOO) and Microsoft (NASDAQ: MSFT) are way behind Google. 

Google is also pursuing an aggressive strategy in rapidly growing mobile market. According to market research firm EMarketer, U.S. mobile advertising spending will grow 43 percent this year to $593 million from $416 million last year. Mobile ad spending is forecast by EMarketer to grow almost threefold more by 2013, reaching $1.56 billion. In mobile space, Google is taking on Apple Inc.'s (NASDAQ: AAPL) iPhone with its Android operating system. Google has made its Android operating system software available on a variety of different mobile devices. 

Market research company, comScore 's mobile subscriber market share report for the three month average period ending February 2011 indicates that Google's open source operating system, Android continues to increase its popularity in the United States. The report revealed that Google Android grew 7.0 percentage points since November, strengthening its number 1 position with 33.0 percent market share.  Android stole nearly all of that from Research In Motion, which lost 4.6% and dropped from 33.5% to 28.9% of the U.S. market. Android also stole some share from Microsoft and Palm, despite the fact that Windows Phone 7 launched in the latter part of 2010 and Palm (now owned by HP) launched a new smartphone on Verizon's network in the three-month periodIn the same three-month period, Apple's (NASDAQ: AAPL) market share increased only from 25% to 25.2%. According to Gartner, Android will run on 49 percent of smartphones sold next year.

Google has been leveraging its Android operating system to make major gains in the smartphone industry. According to media reports, the internet search giant is now working on a mobile-payment service that would allow shoppers to use their mobile phones rather than credit cards to pay for goods in retail stores. For Google, the move would help advertisers more effectively target consumers and allow merchants to push coupons and loyalty schemes to customers.

However, Google is facing growing scrutiny from regulators as it bolsters its search business. According to media reports, the U.S. Federal Trade Commission is considering a broad antitrust investigation into Google’s dominance of the Internet-search industry. Meanwhile, officials in European Commission are examining whether Google discriminated against other services in search results and stopped websites from accepting rival ads. A complaint from Microsoft last month may expand the investigation to online video and mobile phones.

Among other developments, starting April 4, Larry Page, Google Co-Founder, took charge of Google's day-to-day operations as Chief Executive Officer. Eric Schmidt assumed the role of Executive Chairman, focusing externally on deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership. Internally, Schmidt would continue to act as an advisor to Larry and Sergey. Sergey Brin, Google Co-Founder, would devote to strategic projects, in particular working on new products.

The company's stock currently trades at a forward P/E (fye Dec 31, 2012) of 14.38 and PEG Ratio (5 yr expected) of 0.91. In terms of stock performance, Google shares have lost nearly 4 percent since of the beginning of the year.

Full Disclosure: None.

Google Inc. (NASDAQ: GOOG): Q4 Earnings Preview 2010

Google Inc. (NASDAQ: GOOG), owner of the world's most-popular online search engine, is scheduled to release fourth quarter earnings after the closing bell on Wednesday, January 20, 2011. Analysts, on average, expect the company to report earnings of $8.06 per share on revenue of $6.04 billion. In the year-ago quarter, the company reported earnings of $6.79 per share on revenue of $4.95 billion.

Google Inc., a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers. The company's innovations in web search and advertising have made its web site a top internet property and its brand one of the most recognized in the world.

In the preceding second quarter, the Mountain View, California-based company's net income was $2.17 billion, or $6.72 a share, compared to $1.64 billion, or $5.13 a share, in the year-earlier quarter. On an adjusted basis, the company earned $7.64 a share in the latest quarter. Revenue increased 23% to $5.5 billion from $5.94 billion.  Analysts, on average, expected the company to report earnings of $6.67 per share on revenue of $5.25 billion. Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of its AdSense partners, increased approximately 3% over the third quarter of 2009 and increased approximately 2% over the second quarter of 2010. Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of its AdSense partners, increased approximately 16% over the third quarter of 2009 and increased approximately 4% over the second quarter of 2010. 

Google is the undisputed market leader when it comes to web search. Google eads the search market with a share of around 68% while competitors Yahoo (YHOO) and Microsoft (MSFT) are way behind Google. 

Google is also pursuing an aggressive strategy in rapidly growing mobile advertising market. According to market research firm EMarketer, U.S. mobile advertising spending will grow 43 percent this year to $593 million from $416 million last year. Mobile ad spending is forecast by EMarketer to grow almost threefold more by 2013, reaching $1.56 billion. In mobile space, Google is taking on Apple Inc.'s (NASDAQ: AAPL) iPhone with its Android operating system. Google has made its Android operating system software available on a variety of different mobile devices. Market Research company, comScore 's latest mobile subscriber market share report for the three month average period ending November 2010 indicates that Google's open source operating system, Android continues to increase its popularity in the United States. The market research firm said in a report that Android has a 26 percent market share in the U.S., snatching the second position after Research in Motion’s (NASDAQ: RIM) BlackBerry while Apple was relegated to the third spot with 25 percent market share. Google recently announced that there are now more than 300,000 Android phones activated every day. In November of 2009, Google held just 3.8% of the market. At recently held CES 2011, Google recently offered a preview of its newest tablet-friendly Android mobile operating system, Android 3.0, or Honeycomb,.

During the quarter in review, Google also unveiled a laptop powered by its Chrome operating software, a move that could pose a challenge to the dominant position held by Microsoft Corp. (NASDAQ: MSFT) and Apple Inc. n computer software. The first laptops will be first made by Acer Inc. and Samsung Electronics Co. Other manufacturers are also building devices running the software, Google said. The company said that the first laptops powered by the Chrome OS will be available for sale in the first half of 2011. 

Among other developments, Google and Myspace Inc., a division of News Corp. (NASDAQ: NWS) announced a multi-year agreement to renew and expand their long-standing search and advertising relationship. Under the terms of the new agreement, Google would continue to power Myspace search and search advertising and would also provide additional display advertising services to enhance the rich entertainment content experience inherent on Myspace.

In terms of stock performance, Google shares have gained nearly 5 percent over the past year.

Full Disclosure: None.

Google Inc. (NASDAQ: GOOG): Q1 Earnings Preview 2010

Google Inc. is scheduled to release Q12010 earnings after the closing bell on Thursday, April 15, 2010. Analysts, on average, expect the company to report earnings of $6.56 per share in the first quarter with estimates ranging from a low of $6.05 to a high of $6.91 per share. Revenues for the quarter are estimated to be $4.92 billion. In the Q12009, Google reported earnings of $5.16 per share on revenue of $4.07 billion.

Google Inc., a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers. Its automated search technology helps users to obtain instant access to relevant information from its online index.

In the preceding Q42009, the Mountain View, California-based company reported that its net income surged to $1.97 billion or $6.13 per share, from $382 million or $1.21 per share, in the year-ago quarter. Excluding items, net income grew to $2.19 billion or $6.79 per share from $1.62 billion or $5.10 per share in the year-ago quarter. Revenue increased 17% to $6.67 billion from $5.70 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of $6.50 per share on revenue of $4.92 billion.

The company has been the undisputed leader in search engine for several quarters now. In February 2010, Google retained its solid number one ranking with a 71% market share, up slightly from 70.4% in January 2010, according to data from compete.

Google has also made headway in efforts to expand into mobile advertising. The mobile search advertising market is rapidly growing as mobile Internet use soars. The number of owners of smartphones, or devices with Internet access and other advanced functions, rose 21% in the U.S. in the three months ended in February compared to the prior period, comScore said. In mobile space, Google is taking on Apple Inc.’s iPhone with its Android operating system. Google has made its Android operating system software available on a variety of different mobile devices. Some 6.8 million Android- powered phones were sold in 2009, accounting for 3.9 percent of the global market, according to researcher Gartner Inc. Google Inc.'s share of the U.S. smartphone market especially rose sharply in the three months ended in February, while rivals Apple Inc. and Microsoft Corp. each lost share, according to a report published by ComScore. ComScore reported that Google's share of smartphone subscribers rose to 9%, compared to 3.8% at the end of November.

After a two-month dispute with China over censorship issues, Google shut its mainland Chinese search engine in March and redirected users to its unfiltered Hong Kong site. Google called the move "entirely legal," and said it will continue research and development activities in China. The move is the latest in Google's feud with China over the censorship of search results. Google was second in the Chinese search market, behind Baidu Inc.

In February, Google Inc. on its corporate blog, announced a plan to build and test ultra high-speed broadband networks in a small number of trial locations across the U.S. The Internet giant intends to offer the service at a competitive price to at least 50,000 and potentially up to 500,000 people.

The internet search giant also introduced Google Buzz in February, which integrates photos, videos and links, and makes them easy to share publicly or privately.

Meanwhile, according to media reports, Google has teamed up with Intel, Sony Corp. to marry Internet content with conventional TV, extending technology into the living rooms. The companies are reportedly working on developing a set-top box running Google's Android operating system for the new platform called Google TV. The box will allow users to access Internet content alongside traditional television programming through the Google Chrome browser, with a user interface designed by Google.

For Google, first quarter was a busy one on the acquisition front. Early in February, Google has acquired social search service Aardvark, says a source that has been briefed on the deal, for around $50 million. Also in February, Google acquired reMail, an app that provides advanced e-mail search capabilities for the iPhone. In March, Google agreed to purchase online photoediting site Picnik, Inc. and Docverse, a service that lets users collaborate around Microsoft Office documents.

In terms of stock performance, Google shares have lost nearly 7 percent since the beginning of the year.

Full Disclosure: None.

Google Inc. (NASDAQ: GOOG): Q4 Earnings Preview 2009

Online search giant Google Inc. (NASDAQ: GOOG) is scheduled to release financial results for the fourth quarter after the market close on Thursday, January 21, 2010. Analysts, on average, expect the company to report earnings of $6.43 per share on revenue of $4.89 billion. In the year ago quarter, the company reported earnings of $5.10 per share on revenue of $4.22 billion.

Google Inc., a technology company, maintains index of Websites and other online content for users, advertisers, Google network members, and other content providers. Its automated search technology helps users to obtain instant access to relevant information from its online index.

In October, the internet and search engine giant said that its third quarter profit increased from last year, driven predominantly by higher advertising revenues. The Mountain View, California-based company reported net income of $1.64 billion or $5.13 per share for the third quarter, up from $1.29 billion or $4.06 per share in the prior year quarter.On a non-GAAP basis, net income rose to $1.88 billion or $5.89 per share from $1.56 billion or $4.92 per share in the third quarter of 2008. Third quarter gross revenues increased 7% to $5.94 billion from $5.54 billion in the same quarter of last year. Excluding Traffic Acquisition Costs, revenues for the quarter rose 8% to $4.38 billion from $4.04 billion a year earlier. Analysts, on average, expected the company to report earnings of $5.42 per share on revenue of $4.24 billion.

The company has been the undisputed leader in search engine for several quarters now. According to data published by Internet data tracking firm comScore, Google sites accounted for 65.7% search market share in December 2009, up from 65.6% the previous month.

Early this month, Google unveiled its much anticipated smartphone "Nexus One" to expand its reach from the PC to the mobile world and ensure its online products and ads get prominent placement on a new breed of wireless Internet devices. The device will feature a 3.7-inch (9.4 centimeter) touchscreen display and will run the 2.1 version of the Android operating system and feature OLED display technology, a trackball for user interface control, an accelerometer chip, and a 5 megapixel camera.

In January, Google Inc. that it may quit China, the world's biggest Internet market by users, after hackers apparently looking for information on human-rights activists broke into its China site. According to media reports, the company is planning to hold discussions with the Chinese government during the next few weeks.

For Google, fourth quarter was a busy one on the acquisition front. In November, the online giant agreed to acquire mobile display and technology provider, AdMob for $750 million in stock. AdMob, a technology start-up, creates technology to display advertisements on mobile phones and track advertisements. The acquisition is expected to enhance Google's existing expertise and technology in mobile advertising, besides providing advertisers and publishers more choice in the new, growing area.Also in November, Google confirmed that it had acquired Gizmo5, a company that offers voice-over-IP software for mobile phones and computers. Gizmo's service is similar to Skype's in that it lets users to make low-cost or free calls using a software client on their computers. The firm also announced the acquisition of Teracent, a startup that helps advertisers reformat ads based on geography, language, and other factors in real time. Google also acquired AppJet, the startup behind EtherPad, a real-time collaborative word processor, for an undisclosed amount.

The company's stock currently trades at a forward P/E (fye 31-Dec-10) of 21.91 and PEG ratio (5 yr expected) of 1.19. In terms of stock performance, Google shares have gained nearly 98% over the past year.

Full Disclosure: None.

eBay Inc. (NASDAQ: EBAY): Q4 Earnings Preview 2009

eBay Inc. (NASDAQ: EBAY) is scheduled to release financial results for fourth quarter after the market close on Wednesday, January 20, 2010. Analysts, on average, expect the company to report earnings of 40 cents a share on revenue of $2.28 billion. In the year ago quarter, the company reported earnings of 41 cents per share on revenue of $2.04 billion.

eBay Inc. and its subsidiaries provide online marketplaces for the sale of goods and services, online payments services, and online communication offerings to individuals and businesses in the United States and internationally. It operates in three segments: Marketplaces, Payments, and Communications.

In October, the San Jose, California based company reported that its third quarter net income declined to $350 million or $0.27 per share, compared to $492 million or $0.38 per share, in the comparable quarter last year. Non-GAAP net income for the quarter was $502 million or $0.38 per share, compared to $592 million or $0.46 per share, in year-ago period. Quarterly revenue rose to $2.2 billion from $2.1 billion in the same period last year. Analysts, on average, expected the company to report earnings of $0.37 per share on revenue of $2.14 billion.

On an FX neutral basis, fixed price gross merchandise volume or GMV excluding vehicles grew 37% or 17% excluding G-market.

For the fourth-quarter 2009, eBay expects GAAP earnings per share in the range of $0.28 to $0.30 and non-GAAP earnings per share in the range of $0.38 to $0.40. Net revenue is forecast in the range of $2.20 billion to $2.30 billion.

In November, the online retailer announced the successful completion of the sale of its Skype communications unit in a deal valuing the business at $2.75 billion. The buyer, who will control about 70% stake, is an investor group led by Silver Lake and includes Joltid Limited and certain affiliated parties, the Canada Pension Plan Investment Board and Andreessen Horowitz. eBay received about $1.9 billion in cash and a note from the buyer in the principal amount of $125 million. The company retained an around 30% equity investment in Skype. The company also purchased senior debt securities with a face value of $50 million as part of Skype debt financing.

The 2009 online holiday shopping season was a positive one as growth rate surpassed analyst estimates. According to comScore, consumer spending online rose 4% compared to last year, with shoppers spending $29.1 billion at online retail sites in November and December. In 2008, online sales as tracked by comScore fell 3 percent. For eBay, the biggest shopping day of the year—with more than 2.3M transactions in the U.S.—was Sunday, December 13th. Similarly, Paypal, a subsidiary of the company, reported a double digit growth in online sales or total payment volume on Cyber Monday. Black Friday 2009 total payment volume jumped 20% from the year before. Similarly, on Thanksgiving Day 2009, total payment volume surged by 25% year-over-year compared to Thanksgiving Day 2008.

The company is also benefiting from a growth in mobile commerce in the United States. Mobile shopping at eBay tripled year-on-year this holiday season. According to figures released by eBay, said 1.5 million items were bought worldwide via eBay mobile applications this holiday season. During 2009, eBay buyers and sellers have generated over US$500 million of transactions using mobile devices.

Though, it appears that eBay's turnaround efforts have started to pay off, the firm still faces an uphill climb. Despite eBay's vast potential, Amazon (NASDAQ: AMZN) dominates the e-commerce space continues to grow from strength to strength. Apart from Amazon, eBay also faces heightened competition from new entrants like Google (NASDAQ: GOOG), which may leverage its operations to create compelling alternatives to eBay's current model.

The company's stock currently trades at a forward P/E (fye 31-Dec-10) of 14.38 and PEG ratio (5 yr expected) of 1.20. In terms of stock performance, eBay shares have gained 25 percent over the past year.

Full Disclosure: Long AMZN.

Synaptics Inc. (NASDAQ: SYNA): Q2 Earnings Preview 2010

Synaptics Inc. (NASDAQ: SYNA), a leading developer of human interface solutions for mobile computing, communications, and entertainment devices, is scheduled to report financial results for the second quarter of fiscal 2010 on Thursday, January 21, 2010, after the close of market. Analysts, on average, currently expect the company to report earnings of 56 cents a share on revenue of $131.24 million. In the year ago quarter, the company reported earnings of 84 cents per share on revenue of $141.52 million.

Synaptics creates interface solutions for a variety of devices including notebook PCs, PC peripherals, digital music players, and mobile phones. Synaptics has two business segments, Personal Computer and Digital Lifestyle Products.The TouchPad™, Synaptics' flagship product, is integrated into a majority of today's notebook computers. Since going public seven years ago, Synaptics has grown from 100 million to $473 million in revenue, representing compounded annual growth of 25%.

Late in October, the Santa Clara, California-based company reported quarterly results that topped Wall Street estimates. Net income declined to $9.80 million or $0.27 per share, compared to net income of $12.71 million, or $0.36 per share, in the year-ago quarter. On a non-GAAP basis, net income was $17.25 million or $0.48 per share, compared to net income of $17.87 million, or $0.50 per share, in the previous year quarter. Non-GAAP net income excluded non-cash charges for interest expense, share-based compensation, an investment write down, and a one-time income tax charge. Quarterly revenue increased 3% to $119.59 million from $115.86 million in the comparable quarter last year. Analysts, on average, expected the company to earn 42 cents per share on revenue of $116.39 million for the quarter.The revenue mix from PC and non-PC applications was approximately 62% and 38% respectively.

On a non-GAAP gross margin rose slightly to 40.8% from 40.6% in the prior quarter.

The company ended September with total cash and short-term investments of $197.6 million, up from $192 million at the end of June and had a backlog of $71 million in orders. Cash flow from operations was $29.9 million for the quarter.

The company expects to report second quarter revenue in the range of $128 million to $134 million. For the full year 2010, the company reaffirmed its previous revenue guidance range of $495 million to $525 million.

Synaptics has been investing heavily in value engineering and material science, working with its partners to aggressively take costs out of capacitive Touchscreen in order to bring prices down and to fuel mass market adoption. The firm recently announced that the Google Inc.'s (NASDAQ: GOOG) much anticipated smartphone "Nexus One" uses its ClearPad 2000 capacitive touchscreen sensor. Additionally, the company recently introduced its Fuse product, which integrates a number of interface technologies -multitouch capacitive sensing, haptic feedback, 3-D graphics, and force, grip, and proximity sensing.

The company has done an excellent job of positioning itself as the leader in its niche industry. It is poised to benefit from a spurt in demand for consumer electronics based upon touch technology. Market research firm Gartner's new forecast indicates mobile PC shipments are on pace to reach 162 million units in 2009, a 15.4 percent increase over 2008. In 2010, mobile PC shipments are expected to reach 196.4 million units.

The company's stock currently trades at a forward P/E (fye 30-Jun-11) of 13.93 and PEG ratio (5 yr expected) of 0.80. Symaptics has a healthy balance sheet and strong cash position with net cash per share of $5.81. In terms of stock performance, Synaptics shares have gained nearly 70% since the beginning of the year.

Full Disclosure: None