By JAKE MANN
Google Inc (NASDAQ:GOOG)‘s shares are down close to 9% after the tech giant mistakenly released it’s third quarter earnings around lunchtime. The company missed the Street’s estimates quite significantly, as analysts were expecting it to reach EPS of $10.65 a share; Google Inc (NASDAQ:GOOG) reached just $9.03 a share. The miss of more than 15% comes after Google Inc (NASDAQ:GOOG) beat earnings estimates in Q1 and Q2 by an average margin of 2.3%.
The company, which has been in patent litigation with Vringo, Inc. (NYSEAMEX:VRNG) this week, realized a big loss from Motorola Mobility, which was acquired earlier this year. The segment generated an adjusted loss of over $151 million for Google Inc (NASDAQ:GOOG).
Due to the miss, Google’s Q3 EPS is down more than 7% year-over-year. The company’s stock currently trades at a modest PEG of 1.33 and a trailing P/E of 22.4X. Google’s five-year historical average earnings multiple is nearly 25% higher at 30.0X, and the Internet content and information industry’s average P/E is just over 28.0X. Check out our comprehensive database to see which hedge funds are holding Google Inc (NASDAQ:GOOG).
In light of the Google Inc (NASDAQ:GOOG) fallout, Motorola Solutions Inc (NYSE:
MSI) is down slightly on the day. Motorola Solutions trades at a PEG ratio of 1.52, and analysts earnings growth of 16.3% a year over the next half-decade. This valuation is above Cisco (1.45), but below peers like Harris Corp. (3.01) and Trimble Navigation Limited (1.57). The company sports a trailing P/E of 24.8X, which is sightly above the communication equipment industry’s average. Motorola is expected to report its own Q3 earnings on October 24th, where analysts are forecasting EPS of 73 cents a share, which would mark a 12.3% increase YOY.
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