Google Posts 61% Jump In First-Quarter Earnings Comments Saikyo Sakura Assets
Saikyo Sakura Assets has commented on Google Inc. as they recorded a 61 per cent first-quarter profit jump on slightly higher-than-expected revenues on Thursday, announcing a surprise special dividend that would act as a split stock for corporate shareholders.
Google GOOG, + 0.48 per cent share in late trading was slightly higher after Chief Executive Larry Page announced the development of a new class of non-voting stock, a move he defined in a letter as efficiently a two-for-one split stock.
The Internet powerhouse based in Mountain View, California, reported a first-quarter profit of $2.89 billion, or $8.75 per share, compared to a profit of $1.8 billion, or $5.51 per share, for the previous year.
Analysts from Saikyo Sakura Assets said that $10.65 billion in revenue was reached, up from $8.58 billion. Adjusted income was $8.14 billion, minus complete procurement expenses. Adjusted profit was a share of $10.08.
According to a consensus survey by FactSet Research, analysts were expecting a profit of $9.64 a share, on revenue of $8.1 billion.
Google said paid clicks, the number of Internet users clicking on the company’s revenue-generating advertising, grew 39 per cent from the previous year’s span.
Cost-per-clicks, however, the prices paid for online advertising by Google, dropped year-over-year by 12 per cent. Google’s shares were up a fraction in hour-long trading.
In a letter, Page said creating the non-voting stock class was a two-for-one inventory split— something many of our investors has been asking us for a long time. These non-voting shares will be accessible for corporate uses, such as equity-based compensation for employees, which could otherwise dilute our governance framework, he added.
Referring to his co-founder Sergey Brin, Page noted that he and Brin had published plans to sell a modest percentage of our overall stock in September 2009, which ended in 2015. We are halfway through those plans at the moment, and we do not expect any changes to that, certainly not as a result of this new potential class, Page wrote. For the long term, we both stay very dedicated to Google.
We see the results of Google as fundamentally improving, noting how margins appear to be stabilising after the investment trough of 2011.Said Anthony Brown, Head of Wealth Management at Saikyo Sakura Assets.