Thursday, April 26

Google to split stock; announces dividend

Google, explains its stock split. Also, what the company is doing to maintain the passion of a startup, with CNBC's Jon Fortt. David Garrity, GVA Research, also weighs in on some of the highlights from the call.


Google announced plans to give investors a stock dividend on Thursday, as the search giant reported first quarter that met Wall Street estimates.


Google said its board of directors has approved a dividend of stock to existing shareholders that it calls a 2-for-1 stock split, preserving its corporate and control structure.


The announcement came as Google co-founder Larry Page completed a year after his return as chief executive.


Shares of Google, which finished Thursday's regular session at $651.01, rose to $655 in after-hours trading.


Net revenue, excluding fees paid to partner websites, totaled $8.14 billion in the three months ended March 31, compared with $6.54 billion in the year-ago period and analysts' average estimate of $8.15 billion according to Thomson Reuters I/B/E/S.


Net income was $2.89 billion, or $8.75 per share, compared with $1.80 billion, or $5.51 a share, in the year-ago period when Google took a $500 million charge to settle a government probe into its advertising practices.


Since taking the reins one year ago, Page has cut back on extraneous projects, launched a social networking service to challenge Facebook, and signed a $12.5 billion deal to acquire smartphone maker Motorola Mobility Inc.


Breaking down the details of Google's earnings announcement and the board's decision to approve a 2-for-1 stock split, with Herman Leung, Susquehanna Financial group analyst; David Garrity, GVA Research principal; and CNBC's Maria Bartiromo and Jon For...

Copyright 2011 Thomson Reuters.

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