Are you a glass-half-full or glass-half-empty person? Which group you fall into – and, of course, what business you are in – will help determine how you view today’s financial news on Google Inc. (GOOG).
For the fourth quarter, Google posted a huge (68 percent) decline in profit, yet sales were strong and earnings were better than analysts expected.
Google’s net income for the quarter was $382 million, or $1.21 a share, down from $1.21 billion, or $3.79 a share, a year earlier. Losses were attributed to writedowns on investments, including $726 million for its stake in AOL.
But Google revenue increased 18 percent from the same quarter the previous year, yet dropped off 31 percent from the previous quarter. Analysts expected Google's earnings to be $4.95 a share, on $4.1 billion in net revenue, but instead the search giant reported $5.10 a share, on $5.7 billion in revenue. The company’s resilience during this economic downslide is attributed to its ongoing success in online advertising as well as its expansive efforts to cut costs through layoffs, closing less profitable businesses, research initiatives, and more.
