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Google's Q2 Earnings Fall Shy, But Revenue Bests Estimates
By Tony Maglio
TheWrap

Google reported earnings per share in the second quarter of 2014 of $6.08, falling short of the approximate $6.23 that analysts anticipated. It did, however, top revenue estimates with $15.96 billion versus a forecasted $15.62 billion — that latter expectation courtesy of Thomson Reuters.

Net income (including from discontinued operations) in the second quarter of 2014 was $3.42 billion. Average cost-per-click, which includes clicks related to ads served on Google sites and from network members, decreased approximately six percent over the second quarter of 2013 and was flat with Q1.

In the filing, Google also announced that Chief Business Officer Nikesh Arora is leaving after nearly 10 years at the company to join SoftBank as vice chairman of SoftBank Corp. and chief executive of SoftBank Internet and Media. Omid Kordestani will be stepping in to lead the business organization for now.

Also read:  Marissa Mayer on Yahoo Earnings: 'We Are Not Satisfied'

Last quarter, Google missed earnings estimates as well, now it's four out of the last six quarters that the tech company has fell short.

Still, CFO Patrick Pichette said in a press release: "Google had a great quarter with revenue up 22 percent year on year, at $16.0 billion. We are moving forward with great product momentum and are excited to continue providing amazing user experiences, with a view to the long term."

For the previous quarter, Q1, Google reported $4.3 billion in profit, up from $3.7 billion in the same period a year ago but short of the $4.38 billion expected by analysts. Shares at $6.27 fell shy of expectations at $6.39. The knock was that advertising revenue failed to grow as quickly as expected.

For Q2, analysts expected Cost Per Click to decrease 10 percent year-over-year, while paid clicks were estimated to increase 28 percent. Digital ad expenditure by most companies was expected to increase 16.7 percent this year compared to last year, according to estimates by eMarketer.

Also read:  Google Glass Banned at UK Movie Theaters

Earlier this week, Yahoo Inc. witnessed its revenues from search ads and paid clicks increased six percent and three percent year-over-year, respectively. Revenue for Yahoo has declined essentially every quarter since Marissa Mayer took over.

More to come …

The post Google's Q2 Earnings Fall Shy, But Revenue Bests Estimates appeared first on TheWrap.

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