Google beats analyst estimates for Q1 2008

Google today posted its first quarter profits, thoroughly outpacing Wall Street analyst estimates, which were based on the effects a slowing economy would have on sales and earnings. According to CNN Money, the news follows a weak fourth quarter last year, with earnings coming in under analyst estimates. The report shows Google's income rising 30 percent to $1.31 billion – $4.12 a share – with $1.54 billion before one-time charges.

Sales rose 42 percent to $5.2 billion, with advertising sales netting a total of $3.7 billion, beating predictions of $3.6 billion. A conference call with CEO Eric Schmidt revealed that he and the other board members do not see an impact from broader macroeconomic trends.

Analyst worried that Google's paid click volume would be flat or even drop slightly, but the company announced that paid clicks increased 4 percent fro the fourth quarter 2007, and up 20 percent from the year ago quarter.

Shmidt said that any slowdown in paid clicks is attributed to the company examining more quality advertisements in fewer number, which would actually generate more revenue per click.

Filed under: Investor, industry
Other story tags: Google, 2008, earnings, first quarter