As Microsoft’s earnings report approaches next week, here are some brief notes on the results reported this week by other industry players.
Google Inc. on Thursday posted a 92 percent jump in quarterly profit and revenue near the top end of expectations as the company tightened its grip on the Web search market, sending its shares up 6.7 percent.
Rob Hof says that’s “a whole bunch more YouTubes.” Continuing:
“It was a clean beat quarter,” said Tim Boyd, an analyst with Caris & Co. “These guys just continue to kill it. The stock should be going up from here. The number one question is what can (they) do with YouTube and how quickly it can have an impact.”
Apple Computer Inc. shares climbed almost 6 percent Thursday after beating Wall Street’s profit expectations for its fourth quarter on strong sales of its iPod and Macintosh computers.
After the markets closed Wednesday, Apple said it shipped 8.7 million iPods, up 35 percent from the year-ago period. A good back-to-school season also helped Apple ship a record 1.6 million computers, up 30 percent from a year earlier, breaking its previous record of 1.38 million units in the first fiscal quarter of 2000.
The sizzling sales put Apple’s fiscal 2006 revenue at a record $19.3 billion, up from its previous all-time high of $13.9 billion last year.
Paul Thurrott notes that despite growing faster than the overall PC market, Apple’s share is still less than 3%. Regardless, you have to give Apple credit for successfully negotiating a processor architecture change.
Yahoo, the world’s largest portal, said yesterday that its profit fell sharply in the third quarter and that growth would continue to slow for two main business lines — graphic display advertising and advertising on Web searches.
The company’s chief executive, Terry S. Semel, was unusually contrite yesterday in a conference call with investors.
Search revenue, he said, would substantially increase when Yahoo completed a long-delayed computer system called Project Panama, which will use a new way to determine how ads are placed on search result pages.
Mr. Semel announced that the first customers had started using the system. But only after all of the company’s search advertisers have converted to the new system, sometime after the end of the year, will Yahoo introduce the new auction method, which is the part of the system meant to improve revenue.
Aside from the tardy Panama, Yahoo has an antique reliance on banner ads which have been under pricing pressure.