Suitably Flip

Google Whiffs Huge

Now that's a big earnings miss.  Google's fourth quarter earnings per share was $1.27.  That's impressive, given that it's a year-over-year increase in net income of 82%.  But seeing as analysts were looking for $1.71 per share, the shares have sold off mightily in after hours trading.

Have you been kicking yourself for not buying Google under $375 per share?  Well, now's your chance.

A closer look reveals it's not quite as bad as it sounds.  Zeroing out the effects of charitable contributions and compensation expenses brings the number up $1.54.  Plus, Google's effective tax rate this quarter was as much as 12 percentage points higher than in the comparable quarter (and they expect it to revert to the lower rate this year).

Still disappointing for Google shareholders, but not quite the mess implied by the headline number.

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Google Whiffs Huge

Now that's a big earnings miss.  Google's fourth quarter earnings per share was $1.27.  That's impressive, given that it's a year-over-year increase in net income of 82%.  But seeing as analysts were looking for $1.71 per share, the shares have sold off mightily in after hours trading.

Have you been kicking yourself for not buying Google under $375 per share?  Well, now's your chance.

A closer look reveals it's not quite as bad as it sounds.  Zeroing out the effects of charitable contributions and compensation expenses brings the number up $1.54.  Plus, Google's effective tax rate this quarter was as much as 12 percentage points higher than in the comparable quarter (and they expect it to revert to the lower rate this year).

Still disappointing for Google shareholders, but not quite the mess implied by the headline number.