NEW YORK (TheStreet) -- Shares of Google Inc (GOOG - Get Report) were up 1.03% to $566 in pre-market trading Thursday, ahead of the global technology company's latest earnings results, due out after the market closes later today.
The company is expected to earn $6.70 per share on revenue of $17.75 billion for the period, according to analysts polled by Thomson Reuters.
In the same quarter of last year, Google earned $6.08 per share on revenue of $15.96 billion.
Investors will hear from the company's new CFO Ruth Porat for the first time during the earnings call.
Porat, who took over in May, may signal any change in the company's direction and will likely focus on the expenses, according to Bloomberg.
Google is a search engine that focuses its business around search, advertising, operating systems and platforms, enterprise, and hardware products.
The company is based in Mountain View, Calif.
Separately, TheStreet Ratings team rates GOOGLE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOOGLE INC (GOOG) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GOOG's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 11.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although GOOG's debt-to-equity ratio of 0.05 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.28, which clearly demonstrates the ability to cover short-term cash needs.
- GOOGLE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GOOGLE INC reported lower earnings of $20.22 versus $39.38 in the prior year. This year, the market expects an improvement in earnings ($56.76 versus $20.22).
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, GOOG has underperformed the S&P 500 Index, declining 9.37% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, GOOGLE INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: GOOG Ratings Report