MSFT

The Shift Toward Mobile Computing Can’t Stop Google

by

Search giant Google (click ticker for report: GOOG) reported another fantastic quarter Thursday afternoon. The firm exceeded expectations, earning $10.12 per share for its second quarter (up 16% year-over-year and $0.08 greater than the consensus estimate). Comparable revenue grew 21% for the second quarter to $10.9 billion, in-line with estimates. When Motorola Mobility is thrown into the mix, revenues grew 35% to $12.2 billion. Given the firm’s robust cash generating ability, we think shares are undervalued at current levels. Though many boil Google down to the Android operating system, the firm remains the heavily-entrenched global leader in search and online advertising. In fact, paid clicks increased 42% year-over-year due to the impact of mobile advertising, but average cost-per-click fell 16% … Read more

Red Hat’s Second Quarter Outlook Misses the Mark

by

Open-source enterprise software-maker Red Hat (RHT) reported results for its first quarter of fiscal year 2013. The firm’s performance exceeded expectations, with earnings coming in at $0.30 per share compared to the Street consensus of $0.27 per share. Revenue came in at $314.7 million, up 19% compared to the first quarter of 2012, and slightly ahead of the Street’s expectations. However, Red Hat reported an outlook below both its previously-issued guidance and the Street’s expectations. The firm guided to second-quarter earnings of $0.28-$0.29 per share, which is roughly in-line with the Street consensus of $0.29. Second-quarter revenue is expected to come in the range of $320-$322 million, well below the consensus of $330.8 million. For the full-year, Red Hat lowered its … Read more