Google Inc. (NASDAQ: GOOG) is scheduled to release second quarter financial results after the closing bell on Thursday, July 15, 2010. Analysts, on average, expect the company to report earnings of $6.53 per share on revenue of $4.99 billion. In the year-ago quarter, the company reported earnings of $5.36 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. 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 reported that its net income jumped 38% to $1.96 billion, or $6.06 a share, from $1.42 billion, or $4.49 a share, in the year-earlier quarter. Excluding items, non-GAAP net income climbed to $2.18 billion or $6.76 per share from $1.64 billion or $5.16 per share in the year-ago quarter. Revenue jumped 23% to $6.77 billion from $5.51 billion. Analysts, on average, expected the company to report earnings of $6.60 a share on revenue of $4.95 billion for the quarter.
Google is the undisputed market leader when it comes to web search. In the four weeks ended May 29 2010, Google retained its solid number one ranking with a 72% market share, up 1% from prior month, according to data provider Experian Hitwise.
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. The number of smartphones owners rose by 8.1% to 49.1 million in the U.S. in the three months ended in May compared to the prior period, according to ComScore. 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. Google Inc.'s share of the U.S. smartphone market especially rose sharply in the three months ended in May, while rivals Apple Inc., Research in Motion (NASDAQ: RIMM) and Microsoft Corp. (NASDAQ: MSFT) each lost share, according to a report published by ComScore. ComScore reported that Google's share of smartphone subscribers rose to 13%, compared to 9% at the end of February.
The company recently announced that Chinese government renewed its Internet Content Provider or ICP license to continue operating its Web site in mainland China. The license renewal ends months-long dispute between Beijing and Google and avoids a possible shutdown of the company's service in China, the world's largest internet market.
For Google, second quarter was a busy one on the acquisition front. Google acquisitions announced in second quarter include online video hosting platform Episodic; visual search engine mobile start-up PlinkArt; server technology start-up Agnilux; VOIP provider Global IP Solutions, advertising technology startup Invite Media and flight information software company ITA Software, Inc. Meanwhile, Google officially completed the acquisition of mobile-advertising leader AdMob after the Federal Trade Commission unanimously approved Google's AdMob deal in May.
Among other developments, Google along with Apple Inc., Motorola (NYSE: MOT), HTC, Microsoft and LG were recently sued by NTP, a privately-held intellectual property firm NTP Inc. for infringing its patents related to the delivery of electronic mail over wireless communications systems. In terms of stock performance, Google shares have lost more than 27 percent since the beginning of the year.
Disclosure: Author doesn't own any of the stocks discussed here.
