| Google’s Proceeds Eclipse Projections |
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Ruchi Sharma, 24x7 Updates
The Internet search favourite hit yet another high by announcing its third-quarter financial figures, briefly lifting the company’s market capitalization above $100 billion for the first time and beating the market estimates, as well its own expectations.
The results exceeded the hopes as Google earned $US381 million ($507 million), or $US1.32 a share, in the third quarter, up more than sevenfold from its $US52 million, or US19c a share, a year ago. Last year’s results were depressed by a $US201 million non-cash charge related to settling a patent dispute with Yahoo.
Google shares rose about 10 per cent after the announcement, which was at the end of regular trading. In after-hours trading, shares hit $US335, a record, up from the $US303.20 closing price in regular trading.
Defying the most bullish analyst thoughts ,excluding ad commissions, Google’s third-quarter-revenue growth accelerated by 18 percent from the second quarter. After crunching the numbers, some of the most optimistic analysts became even more enthusiastic about Google’s prospects.ThinkEquity Partners analyst John Tinker and Hoefer & Arnett analyst Martin Pyykkonen both raised their targets for Google shares to $425, up from $350, while Citigroup analyst Mark Mahaney predicted the shares would hit $430 within the next year.
"We surprised ourselves this quarter," Google CEO Eric Schmidt said on Thursday. "Business was much stronger than I expected." Mr Schmidt said the strong growth did not come from more users, since traffic slowed in the summer, but from Google’s growing ability to earn more money from internet searches.
Owing to its multifarious expansions Google’s online search engine remains its economic nucleus, waving off rising competition from its biggest rivals, Yahoo! and Microsoft.
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| AT&T Does IT in the Last Quarter before Takeover - Oct 21, 2005 10:15 IST |
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AT&T has swung back into profit in what could be the last quarter before the company is acquired by former subsidiary SBC Communications Inc. The company said Friday that earnings rose $520 million, or 64 cents per share, in the third quarter, compared with a year-earlier loss of $7.1 billion, or $8.99 per share, that included an asset write-down.
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| Rupee Slips and Sensex Flips - Oct 19, 2005 12:39 IST |
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Putting sudden breaks on the sensex soaring higher to a lifetime high of 8221, the over -heated Indian equity market was taken aback with the sensex plunging by 80 points.
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| Intel does a Record Q3, Misses Expectations - Oct 19, 2005 7:19 IST |
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A steep rise in the demand for notebook computers powered by Intel chips has helped Intel post a record $9.96bn third quarter revenue, 18% higher than last year.
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| Oil Plummets, Creeps Below $64/Barrel - Oct 5, 2005 7:19 IST |
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Finally some respite in those burgeoning oil prices breaking the back of monthly budgets. Crude oil prices slid more than $2 a barrel Tuesday in a sign that market jitters may be easing somewhat because the summer driving season is over and the winter heating season has yet to begin, analysts said.
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| Boots, Alliance to Create $23bn Healthcare Mammoth - Oct 3, 2005 16:10 IST |
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Boots Group Plc, owner of the largest U.K. drugstore chain, will merge with Alliance Unichem Plc in a stock transaction to create a company with sales of more than 13 billion pounds ($22.9 billion) as supermarkets grab sales.
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| Cable Wars Unleashed, NTL Agrees to Buy Telewest - Oct 3, 2005 16:1 IST |
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Giving an onus to ever burgeoning cable wars and ending longtime speulations NTL Inc., Britain’s biggest cable operator, agreed to buy Telewest Global Inc. for about $6 billion, creating a larger rival for U.K. pay-television leader British Sky Broadcasting Group Plc.
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