NEW YORK ( TheStreet) -- When search giant Google (GOOG) reported its results for the first quarter back in April, the company's Chief Executive Officer Larry Page introduced the report by saying that the company's three main priorities were "velocity, execution and focusing on the future."
With the company having just delivered an exceptional second quarter, it is clear that not only did it hold true to its promise, but it was intent on putting its rivals on notice -- namely Facebook (FB - Get Report), Microsoft (MSFT - Get Report), Amazon (AMZN - Get Report) and, most importantly, its chief adversary Apple (AAPL - Get Report).
The Quarter That Was
For the quarter, the company generated a net income of $2.79 billion or $8.42 per share on revenue of $12.21 billion -- topping analysts' estimates of $8.41 billion. Though its earnings per share fell slightly short of expectations, the number represented an increase of almost 10% from the previous year.
Even more remarkable is the fact that over the past five quarters, the company has averaged over 30% revenue growth, including 35% for the current quarter, while its net income climbed over 11% annually, continuing a string of three consecutive quarters. The company continues to demonstrate what is possible when innovation meets sound execution as its EPS has increased by an average of 28.1% dating back since last year.During the announcement the company's CEO, Larry Page offered this: Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O -- in particular the Nexus seven tablet, which has received rave reviews. This quarter is also special because Motorola (MMI) is now part of the Google family, and we're excited about the potential to build great devices for users. These numbers were indeed impressive, especially when you factor in Motorola's potential impact. The company has shown such exceptional growth over the past three years in what has broadly been a poor economic climate; it is scary to think where it would have been in more robust times -- particularly absent market and corporate pressures due to slower advertising expenditures. The economy has shown considerable signs of improvement, heightening Google's true growth potential and expectations for what it can realistically achieve over the course of the next 18 to 24 months. Remarkably, even at $615 the stock remains relatively cheap with a P/E of 18.