Google’s out and it’s a HUGE beat to the upside in the initial report…

Google’s out and it’s a HUGE beat to the upside in the initial report.

$8.74 EPS on $6.92 billion

vs. estimates heading into the report of

$7.86 EPS and $6.55 billion

So it’s nearly 15% ahead of estimates on the bottom line and nearly 7% ahead on the topline.  The mainstream media will of course hype up that nice beat by saying incessantly over the next three days that “Google beat earnings by a dollar per share!”   Which would be more impressive if the earnings estimates had been like $2.90 share instead of nearly $8 per share.

Regardless this will be called “blowout” by most analysts and we’ll take it.  In fact, we’re likely to see earnings estimates for next year go much higher — say by $1 per share per quarter, which means a $4 or so raise for the next four quarters.   Current estimates are for $34 per share in earnings this year rising to $39 per share next year.  Within two weeks those consensus estimates will likely be $45 per share for calendar 2012, up from the $39 it’s at today.

As you knok, I’ve got both calls and common stock in Google and it was my second biggest position with lots of leverage to the upside heading into tonight’s report.  With the stock trading up about 10% right now after hours, I’m likely to take some profits tomorrow.

Nothing’s set til we see it trade tomorrow though.  No rest for the wicked as my Grandpa Willard used to say.