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), Microsoft (MSFT), Amazon (AMZN) and, most importantly, its chief adversary Apple (AAPL).
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.
Moving ForwardHowever, as good as a quarter this was for the company, I am not yet ready to proclaim that it has won anything just yet -- not as long as its chief rival, Apple, remains dominant and both Microsoft and Amazon have announced plans to launch new tablets.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV