Today’s Financial Results Mixed

By  |  Thursday, January 22, 2009 at 2:52 pm

Okay, so I can’t be 100 percent negative about this economy all the time. Besides Microsoft’s poor results and resulting job cuts which Harry covered this morning, other big name tech companies also reported results today.

googlelogoGoogle’s results were quite respectable: $4.22 billion in revenue and earnings of $5.10 per share. This beat Wall Street expectations, who were looking for $4.12 billion and $4.96 respectively. How many times these days do you hear about a company beating The Street lately? Not much.

It’s advertising business, essentially the core of Google’s revenues, actually increased ever so slightly which came as a surprise to many. In a weakening ad market, it was expected that the so called “cost per click” would decrease during the quarter.

Employees will be happy: Google is launching a program for “underwater” stock options — where the cost of the option is higher than the current stock price — for new options that will be priced at the share price at close on March 2.

amdlogoBut don’t get too excited. AMD rains on our parade with results that come in below what Wall Street was expecting. The chipmaker was already struggling, so this hits doubly hard.

The company lost $1.424 billion on revenues of $1.162 billion, which means that its losses outpaced revenues. However, lets be far to AMD: this included $996 million in one-time charges, including $684 in impairment charges related to its buy of ATI.

Still, taking all that out, the company lost about 68 cents a share, considerably worse than the Wall Street predictions of 54 cents. AMD doesn’t see a light at the end of the tunnel yet: it warns that Q1 could even be worse.

Nokia logoNokia joined the bad news bandwagon too, posting sales of 12.67 billion euros, down a staggering 20 percent year-over-year. Worse yet the company sees a 10 percent drop in handset sales in 2009 over the year previous.

That’s Nokia’s bread and butter, so essentially expect a full year of financial bad news out of the Finnish phone manufacturer. CEO Olli-Pekka Kallasvuo seems concerned, saying “in recent weeks, the macroeconomic environment has deteriorated rapidly,” and the company is taking steps to insulate itself.

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